Portland Task Force Recommends Tax Overhaul to Address Wealthy Resident Flight

Portland's Central City Task Force Tax Advisory Group, convened by Governor Tina Kotek, recommends major reforms to local tax programs amid concerns about high-income resident flight and public distrust. Key proposals include pausing or restructuring the Preschool for All tax, redirecting surplus funds from the Portland Clean Energy Fund (PCEF), and lowering housing services tax rates, while also suggesting tougher criteria for future tax measures such as limiting their duration and requiring economic impact analyses. The group highlights a growing disconnect between the taxes Portlanders pay and the services they receive, with police response times worsening and homelessness persisting despite significant spending. Some community representatives, including the Coalition of Communities of Color, oppose parts of the plan, warning it may undermine equity goals. The report also suggests ways to boost economic competitiveness, such as raising small business tax exemptions and expanding business incentives, to help retain residents and companies. Overall, the advisory group stresses the need for more transparent, well-managed tax programs to restore public trust and support Portland’s recovery.