CAUTION: City Tax Deadlines are Closer Than They Appear!

If you are prone to procrastination this message is for you. You 2020 Portland city income tax return is due April 30th. This may cause some confusion this year as the IRS extended the filing deadline from the customary April 15th to May 17th. The State of Michigan Treasury Department followed suit extending the state tax return due date to May 17th as well. According to Angie Baum, the City of Portland Income Tax Clerk, “the City is awaiting House Bill 4569 to be passed both in the House and Senate, which would allow the deadline to be moved to June 1, 2021.” The dates for tax return filing have been extended at the federal and state levels this year in recognition of the financial and employment changes many have faced over the past year due to the COVID-19 pandemic.

House Bill 4569 would amend 1969 Public Act 284 the “city income tax act” by setting the uniform due dates for city income taxes collected by the 22 cities in Michigan to be calibrated off the date set by the Internal Revenue Service. “Due to the Legislature’s spring recess we are delayed in following suit,” says Baum. The Michigan house and senate are currently scheduled to reconvene April 13th. In anticipation that this bill will be passed the city has already decided to forego charging late penalties and interest until after June 2nd.

The City of Portland levies a 1% income tax on city residents and businesses and 0.5% on those who live outside the city but who work in the city. “Unlike the majority of communities with an income tax,” says Baum, “Portland’s [income tax revenue] only goes towards infrastructure, specifically road projects and street related work.” Employers located in the city, and those outside but whose employees work in the city are required to withhold income taxes for their employees. All other earners are required to make quarterly estimated payments.

While many major tax preparation software companies include city return forms, more information and city income tax returns can be found on the City of Portland website, City Hall, and the Portland District Library.

PHOTO: Jordan D. Smith