Councilors propose 0.33-point increase to corporate clean-energy surcharge to raise general-fund revenue

Councilors on the Climate Resilience and Land Use Committee discussed a proposal April 10 to increase Portland’s existing corporate clean-energy surcharge from 1% to 1.33% and to raise the city business-license tax exemption from $50,000 to $100,000, with the sponsors saying the changes could generate roughly $60 million a year in new general-fund revenue.

Chair Nick Novick said he and Councilors Carmen Murillo and (Councilor) Dunphy introduced the concept to explore revenue options instead of deep program cuts in the face of an estimated general-fund shortfall. The administration’s February budget forecast identified a roughly $92.8 million deficit that includes expiring one-time funding and proposed new shelter spending, Novick said.

Peter Holzman, the city economist, and Thomas Lanham, revenue-division director, summarized the fiscal math: the current forecast for the clean-energy surcharge is roughly $200 million in the next tax year; raising the rate by one-third would increase that pool to about $266 million, producing roughly $66 million in additional receipts, and raising the business-license exemption to $100,000 would reduce revenue by about $3 million — a net increase in the $60–63 million range under…