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Every resident or part year resident of Portland who has taxable income in a tax year must file a return. Every nonresident who has taxable income derived from working or from sources inside the city limits must file a return. Married persons may file either a joint return or separate returns. The following examples may be used to assist you in determining if a return is required.
For all tax years:
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The City of Portland is one of 24 Michigan cities that has an Income Tax. In Portland, these funds are used for paving, curb and gutter, sidewalks, street lights, and related water and sewer infrastructure.
For fiscal year taxpayers, payments are due the last day of the fourth, sixth, and ninth month during the year for which the payments are made and the end of the thirteenth month following the beginning of the fiscal year.
The Administrator may extend the filing date of the return for up to six months or for the same period granted by a federal extension. Submit a copy of the Federal extension form with payment adequate to cover the unpaid portion of your annual liability to the Portland City Income Tax Office on or before the due date of the return. If no tax is owed or you will be claiming a refund, do not file an extension. Extensions filed without a tentative tax payment will not be accepted or processed by the Income Tax Office.
Current year resident or nonresident income tax returns may be e-filed through a paid tax preparer. Self-prepared tax returns are not accepted electronically. You must file a paper copy with the City of Portland.
A resident is subject to tax on all items included in total federal income. Taxable income includes:
A nonresident is subject to tax on all items included in total federal income, which are derived from or connected with Portland sources. Taxable income includes:
Nontaxable income includes:
Gifts, inheritances, bequests and distributions of principal from estates and trusts.
Proceeds from insurance, pensions, annuities and retirement benefits (including Social Security) even if taxable under the Internal Revenue Code.
Unemployment compensation, supplemental unemployment benefits, welfare relief payments and workers compensation.
Interest from U. S. obligations such as Savings Bonds and Treasury Notes, obligations of the states, or subordinate units of government of the states.
Compensation for service in the U. S. armed forces, including reserve components.
The following items are nontaxable to nonresidents:
Interest, dividends and royalty income.
Income from trusts and estates.
Qualified deferred compensation properly reported on a Form 1099-R.
The following expenses incurred as an employee are allowable subtractions. A portion of expenses is allowable to nonresidents to the extent they apply to income taxed by Portland.
Other allowable deductions include:
Subchapter "S" corporations doing business in the City of Portland must file as a "C" corporation for city income tax purposes.
Non-profit organizations that are exempt from income tax, such as charitable, religious and governmental organizations, mush withhold tax from compensation paid to their employees.
If you are located outside Portland and have employees who work in Portland, you must withhold Portland income tax for all employees working in Portland.
Payments are due monthly if your total monthly withholding exceeds $100; otherwise, your payments are due quarterly. To reconcile income tax withheld each year; you must file the City of Portland Income Tax reconciliation return (PW-3). Payments can also be made on our new Online Employer Withholding Tool.
Payment must be mailed with proper identification to:
Portland City Income Tax259 Kent StreetPortland, MI 48875
Write your social security number or federal identification number on your check and the type of tax that you are paying. Never send a check or money order without some form of documentation. This could cause a delay in applying your payment to the proper account. Always include your social security and telephone number on any correspondence, so we may research your issue properly and contact you if we have questions. When mailing returns, always keep a copy for your records. Please notify us in writing when you or your business has a change (i.e. address, your business incorporates, you sold your business, you discontinued your business, etc.).