by Geon, Bryan
If you prefer to use a credit card that allows you to earn frequent flier miles, be aware that many airlines have only limited service from Portland—usually to their hub cities—and that as a result it can be very hard to redeem miles for a seat. The airlines that have the most flights from Portland are Alaska Airlines, followed by Southwest Airlines, Delta Airlines, and United Airlines. For maximum flexibility, use a card that allows you to earn and redeem miles on one of those airlines or on a selection of carriers.
Consumer Protection, Identity Theft, and Credit Reports
Following a steady stream of disclosures of security breaches affecting major banks, retailers, websites, credit card companies, government agencies, and businesses that collect and sell personal data, it seems nearly impossible to do anything to protect yourself from either credit card fraud or identity theft—and yet, if you’re a victim, a fraud such as identity theft can nearly ruin your life. Victims spend an average of 600 hours trying to repair their credit; it’s a daunting task. For more information, contact the Identity Theft Resource Center at 888-400-5530 or www.idtheftcenter.org, or check out the Federal Trade Commission’s identity theft website (www.consumer.ftc.gov/topics/privacy-identity).
That said, there is some good news: federal law generally limits your liability for unauthorized credit card charges to $50. Industry standards are even tougher and, in practice, consumers are often not held responsible for any unauthorized charges on their credit cards. The trick is to check your monthly statements carefully and notify your credit card company immediately when the charges are incorrect. So what else can you do to protect yourself? Security experts recommend several things. Don’t print your full name and Social Security number on your checks, and don’t carry your Social Security card in your wallet. Consider installing a locking mailbox if you don’t have one already, and in any case don’t let your mail sit in your mailbox any longer than absolutely necessary. Shred personal documents before recycling them. Finally, think twice before you make a financial transaction over the Internet. Convenient though it may be, security failures have been identified even on websites you might reasonably expect to be secure. Never send personal financial details through unencrypted email or submit them to an unsecured website. Finally, check your credit report periodically. You are entitled to one free credit report per year from each of the three major credit reporting companies, so if you request a report every four months from a different credit reporting company, you’ll be able to keep tabs on your credit status for free. You can visit www.annualcreditreport.com for online access to all three.
The national credit bureaus are:
Equifax, 800-685-1111, www.equifax.com
Experian, 888-397-3742, www.experian.com
TransUnion Corporation, 800-888-4213, www.transunion.com
Taxes
The Portland metropolitan area includes two states with very different tax systems. Oregon has no sales tax, but collects a relatively high income tax; Washington has no state income tax, but collects a relatively high sales tax and has a wide range of other taxes and fees; and homeowners in both states pay property taxes. If you live, work, and shop in the same state, the tax situation is fairly straightforward. However, Washington residents who work or shop in Oregon face special rules.
Federal Income Tax
Federal tax forms and publications are available online at www.irs.gov; they can also be ordered from the IRS by telephone by calling 800-829-3676. Preprinted paper forms are available during filing season (January–April 15) at some public libraries. Although you’ll have to go through a metal detector to get them, paper forms are also available at the downtown Portland IRS office, 1220 SW 3rd Avenue, 503-265-3501. You can get answers to your tax questions at this office, but some recent studies have found that the answer you get from an IRS representative often depends more upon the person giving it than on any clearly defined rule or regulation. (The same caution goes for advice provided on the IRS Tax Help Line, 800-829-1040.) The Service says it’s working on standardizing responses.
Filing your tax return electronically can save you time and aggravation and can speed up your refund (if you’re expecting one). Visit the IRS e-file site (www.irs.gov/Filing) for details, including a list of companies that offer tax software or online returns.
State Income Tax
Oregon’s state income tax rate ranges from 5 to 9.9% of taxable income. Most taxpayers fall into the 9% marginal bracket, which kicks in at an extremely low level (taxable income of $8,150 for single filers and $16,300 for married filing jointly for the 2014 tax year). Taxable income above $125,000 for individuals and $250,000 for joint filers is taxed at 9.9%.
Tax forms and additional information are available from the Oregon Department of Revenue, 503-378-4988, 800-356-4222, www.oregon.gov/DOR.
Most (but not all) tax preparers and tax software publishers offer electronic filing for Oregon returns for a fee. Be aware that you will probably have to file an Oregon part-year resident tax return (Form 40P) for the year in which you move to Oregon; not all software publishers allow electronic filing for part-year returns, so check before committing to a program if electronic filing is important to you.
One unique aspect of the Oregon tax system is the “kicker.” Whenever the state’s two-year budget boasts a surplus of more than 2%, the entire surplus is refunded to taxpayers in odd-numbered years. The “kicker” kicks in more often than not, and many Oregonians look forward to receiving these tax refunds occasionally, typically every four to six years. (The checks are conveniently timed to arrive just before the December holidays.) While understandably popular, the kicker system is controversial, and has been criticized for preventing the state from maintaining a reserve fund for years in which revenues fall below estimates.
Oregon currently has no local personal income taxes for employees. A temporary Multnomah County income tax expired at the end of 2005.
Washington has no personal income tax for employees. However, cross-border commuters cannot evade Oregon income tax: Washington residents who work in Oregon must pay Oregon income tax on their earnings from Oregon employment, and Oregon residents who have jobs in Washington must pay Oregon income taxes.
Sales Tax
Oregon does not have a sales tax.
Washington charges both a state sales tax (currently 6.5%) and an array of local sales taxes (which the consumer sees as a single, combined number at the cash register). In Clark County, the total sales tax ranges from 7.7% in unincorporated areas to 8.2% in Vancouver and other incorporated municipalities.
Washington also collects—or attempts to collect—use taxes from its residents who purchase items from other states for use in Washington. For most Clark County residents, the use tax will affect them if they purchase goods via mail-order or over the Internet from retailers who do not collect Washington sales tax, or if they shop in Oregon. A complete description of Washington’s use tax can be found on the Washington Department of Revenue website (http://dor.wa.gov/content/findtaxesandrates/usetax). Although Washington has stepped up enforcement of the use tax, the large number of big box retailers that lurk conveniently on the Oregon side of both Columbia River bridges in Portland suggests that not all Washingtonians are diligent about reporting their purchases.
If you are an Oregon resident, you may not have to pay sales tax on items you buy at a store in Washington. Washington law allows (but doesn’t require) retailers to exempt taxes on certain sales to Oregonians. (The exemption does not apply to meals, services, or lodging, or to items that will be used within Washington.) If the merchant agrees not to charge you sales tax, you’ll be asked to show photo identification, and you may have to fill out a tax exemption certificate. Most retailers in Clark County welcome customers from Oregon, and many are able to handle tax-free transactions. Merchants elsewhere in Washington, particularly small retailers, may not be set up to jump through the necessary tax exemption hoops, but it never hurts to ask.
Property Taxes
Oregon
In Oregon, county governments collect property taxes and distribute the funds to cities, school districts, and various special districts. The annual property tax is payable in thirds, with payments due on November 15, February 15, and May 15. A discount is available if you pay all or two-thirds of your annual tax by November 15. If you have a mortgage with an escrow account for taxes, your lender will pay the county directly.
Property taxes in Oregon generally increase at relatively low, predictable rates. Ballot Measure 5, passed in 1990, limited the overall property tax rate for education and general government purposes to $15 per $1,000 of assessed value. Voter-approved levies (for schools, libraries, or open space, for example) can (and do) raise property tax rates in some jurisdictions well above the Measure 5 limit, and the passage and expiration of various levies can cause your property tax bill to fluctuate significantly from year to year. Your property tax statement should have an itemized list of taxes, fees, and assessments from all the local taxing districts that provide services to your property. Some of these charges may not be based on assessed value.
In 1997, Ballot Measure 50 separated the taxable assessed value of a property from its real market value. Assessed value was initially set at 90% of a property’s 1995 real market value, and subsequent increases in assessed value were limited to 3% per year. An exception to this rule is made for any improvements that raise the value of property by more than $10,000; if you buy a newly remodeled house, your property tax bill may be substantially higher than you expect. However, unlike in states such as California, a property’s assessed value does not skyrocket to fair market value when the property is sold. If a taxpayer feels that the assessor incorrectly estimated the value of the property, he or she can file an appeal with their county’s Board of Property Tax Assessment.
While these measures restrain increases in property taxes when real estate prices rise more than 3% per year, they can also result in assessed values so far below real market values that assessed values, and thus property taxes, can continue to increase even in a market downturn.
Washington
In Washington, counties collect property tax. Property tax bills go out in February, and half of the total tax is due April 30; perhaps to increase Halloween’s scare factor, the other half is due October 31. As in Oregon, there is a statewide limit on the property tax rate—1% of market value, exclusive of voter-approved levies. Unlike in Oregon, however, a property’s assessed value is the same as its current fair market value, and there is no limit on how quickly a property’s assessed value can rise. (In Clark County, property values are reassessed annually.) Washington law generally limits the rate of increase in local levy amounts to 1% per year unless voters approve a higher increase, so in practice property taxes do not increase at the same rate as real estate values (and did not necessarily decrease during the last downturn in real estate values). As an added wrinkle, the 1% increase limit does not apply to individual homes, but only to the taxing district as a whole. Senior citizens and disabled persons may qualify for property tax exemptions or deferrals. Also note that homeowners generally qualify for a three-year exemption on the value of major remodels to single-family houses.
County Offices
For questions about assessments or property taxes for a specific property, check with your county’s assessor:
Clackamas County Department of Assessment and Taxation, 503-655-8671, www.clackamas.us/at/
Clark County (Washington) Department of Assessment, 360-397-2391, www.co.clark.wa.us/assessor/index.html
Columbia County Assessor’s Office, 503-397-2240, www.co.columbia.or.us/departments/assessors-office/assessors-home
Marion County Assessor’s Office, 503-588-5144, www.co.marion.or.us/ao/
Multnomah County Division of Assessment and Taxation, 503-988-3326 (property tax information line), www.multcotax.org
Washington County Department of Assessment and Taxation, 503-846-8741, www.co.washington.or.us/AssessmentTaxation/
Yamhill County Office of Assessment and Taxation, 503-434-7521, www.co.yamhill.or.us/assessor/
Other Taxes and fees
If you are self-employed and you live within the TriMet transit district (which includes most of the Oregon portion of the metropolitan area), you will have to pay TriMet self-employment tax. This tax is collected by the Oregon Department of Revenue. Both Multnomah County and the City of Portland levy business taxes (described as a “license fee” in Portland) on net income. You may be subject to this tax if you’re self-employed; businesses with less than $50,000 in gross revenue are exempt.
Although Washington has no income tax, the state levies a business and occupation (B & O) tax on gross (not net) business receipts. If you are self-employed, you will be subject to this tax. The B & O tax rate depends on the type of business activity you engage in. Full details are available at http://dor.wa.gov/content/findtaxesandrates/bandotax/. Washington also levies a hefty state and local excise tax on the sale of real estate. This tax is generally paid by the seller, so it won’t initially affect you if you are moving to Washington from another state.
Several municipalities in the Portland area, including Oregon City, West Linn, and Lake Oswego, collect street maintenance fees from residents. At press time, Portland is also considering implementing a street fee.
Starting a Business
Oregon’s state government has created a streamlined multi-agency business startup toolkit, available at www.oregon.gov/business/Pages/toolkit.aspx, which is an excellent resource for prospective Oregon businesses. In addition, the Oregon Secretary of State’s Corporation Division publishes “How to Start a Business in Oregon,” a helpful guide to opening a business in the state. The booklet is available online at sos.oregon.gov/business/pages/staring-business.aspx, or by calling the Corporation Division at 503-986-2200. The Portland Development Commission (503-823-3200) operates a web portal (www.pdc.us/for-businesses.aspx) that is useful for existing or planned Portland businesses.
If you want to start a business in Washington, you must file an application for a Master Business License with the state. The Washington Department of Revenue website (bls.dor.wa.gov/startbusiness.aspx) contains useful information about the business startup and licensing process. You may also need a local business license. The Clark County website (www.co.clark.wa.us/aboutcc/new_clarkcounty/startingbusiness.html) lists several resources for people thinking of starting a business in the area.
Getting Settled
Now that you’ve found the home of your dreams—or at least a place to hang your Gore-Tex jacket—you’ll need to get the utilities turned on, get connected to the Internet and/or cable TV, and get rid of the pile of trash and recycling you’ve accumulated during your move. And you’ll need to get a new driver’s license and register your car (if you have one). And you’d better register to vote. You might want to subscribe to a newspaper. And you’ll probably want a library card. And…well, moving in is just the first step to getting settled in Portland.
Utilities
A few large utilities (and several small ones) serve the two states and seven counties that make up the greater Portland metropolitan area. In most cases, you won’t be able to choose which company provides your water, electric, cable, or gas service, so there’s no point in comparing prices. You can usually sign up for service directly with the utility, either by telephone or online. If you are unsure about which specific utility serves your new address, check with your new city or county government, your realtor, or your property manager. Whichever utility company serves your new home, call the one-call utility locator service for your area before you start digging in your new yard. In Oregon, call the Oregon Utility Notification Center at 800-332-2344, or visit the center online at www.digsafelyoregon.com; in southwest Washington, contact the Washington Utility Notification Center, 800-424-5555, www.callbeforeyoudig.org.
Electricity
Two large investor-owned utilities and one public uti
lity district (PUD) provide electricity to most of the Portland metropolitan area. The primary electric utility for most of the city of Portland and its suburbs in Oregon is Portland General Electric (PGE) (503-228-6322, 800-542-8818 for customer service, 503-464-7777, 800-544-1795 to report outages and emergencies, www.portlandgeneral.com). Owned from 1997 to 2006 by Enron, and thus one of that company’s few real assets, PGE is now a stand-alone company. To start service, call customer service or visit www.cs.portlandgeneral.com.
Pacific Power (888-221-7070 for customer service and new accounts, 877-508-5088 for outages, www.pacificpower.net), serves most of Northeast Portland and a portion of downtown Portland. Pacific Power is the local business name of PacifiCorp, a major power company that is part of Berkshire Hathaway Energy.
In Clark County, Washington, electricity is delivered by Clark Public Utilities (360-992-3000 or 800-562-1736 for customer service, 360-992-8000 for outages, www.clarkpublicutilities.com), a customer-owned PUD.
A few PUDs, member-owned electric cooperatives, and municipal power companies provide electricity to outlying communities in Oregon:
Canby Utility, 503-266-1156, is Canby’s independent, city-owned utility.
Columbia River PUD, 503-397-0590, www.crpud.net, provides electric service to much of Columbia County, including Scappoose and St. Helens, and a small part of northern Multnomah County.
Forest Grove Light and Power, 503-992-3250, www.forestgrove-or.gov/city-hall/light-a-power.html, is a department of the city of Forest Grove; it provides electricity to Forest Grove and part of the surrounding area.
McMinnville Water & Light, 503-472-6158, www.mc-power.com, is the municipal utility company for the city of McMinnville.
Salem Electric, 503-362-3601, www.salemelectric.com, serves portions of Keizer and Salem (primarily West Salem).
