Recieved Portland Arts Tax Bill but Dont Live in Portland

Critics debate the metropolis of Portland is using ambitious, heavy-handed tactics to recover the $35 tax.

PORTLAND, Ore. — The city of Portland has been using a private debt collector to go later residents who didn't pay the Arts Tax. Since 2016, the city's acquirement segmentation has sent 14,600 taxpayers to collections for failing to pay the $35 tax.

Critics argue the tactic is besides punitive. If unpaid, the metropolis doubles the corporeality owed on the Arts Revenue enhancement from $35 to $70. A private debt collector tacks on additional drove fees and involvement. As a upshot, small unpaid taxation bills can easily balloon into hundreds of dollars, creating stress and uncertainty.

"It can change your whole life -- getting hounded to pay a debt," said Portland attorney and consumer abet Michael Fuller.

For example, the Arts Tax starts at $35. If you neglect to pay, the city adds a $35 penalty. A private debt collector tacks on $5.56 interest and $16.10 in collection fees. Suddenly, payment due for the Arts Tax has jumped from $35 to $91.66, a 162% increase.

The longer you await to pay, the more debt collectors make.

"It's kind of a dirty hole-and-corner," said Fuller.

In November 2012, 62% of Portland voters approved the Arts Tax. Past law, every Portland resident historic period 18 and older must pay $35. The city bundles the money and so distributes it to help pay for more art teachers and fine art programs effectually the city.

Since its inception, the Arts Tax has been a lightening rod of controversy triggering lawsuits and complaints.

"I think its completely unfair," said Laurel Greenwood of Portland.

Greenwood was confused later getting iii need letters from a private collection agency in Springfield, Oregon. The notices from Professional Credit Service didn't explicate why or who she owed. It was an odd corporeality: $91.66.

"My hubby said this is for that Arts Tax that you are supposed to be exempt from," explained Greenwood, who thought she didn't have to pay the Arts Tax because she is on social security for a permanent disability. Greenwood said she sent the metropolis paperwork months earlier, explaining she was exempt but never heard back.

"Information technology's very disruptive. Why are we getting these letters? We are exempt. Why are they sending us to collections?" asked Greenwood. "It was just very disruptive to the states."

Greenwood said she besides sent documentation to the collection agency in hopes of clearing up any confusion almost unpaid taxes and debt.

Residents are exempt from the Arts Tax if their household income is below the federal poverty level and their personal income -- non including social security -- is $1,000 or less. Critics argue this circuitous formula places an unreasonable brunt on the poor and disabled because they must show they are exempt.

Were you lot eighteen years of age or older on 12/31/2018? NO 2018 Arts Tax. YES Did you alive in Portland at any time during 2018? NO 2018 Arts Tax. Yep the following sources? Security Income benefits (SSI) YES Were you at least 70 or permanently disabled as of December 31, 2018?

The metropolis of Portland claims Greenwood is not exempt and declined to explain why, citing taxpayer confidentiality. Greenwood provided the revenue sectionalisation a alphabetic character waiving confidentiality, allowing the city to hash out her case with KGW.

Revenue division director Thomas Lannom wouldn't elaborate on Greenwood'south instance except to say there were some "misunderstandings" and she had to pay.

Lannom declined three requests for an on-camera interview regarding the Arts Taxation and the metropolis'due south use of a individual collection agency to recover delinquent payments. Lannom said the public agency would merely answer this reporter'south questions in writing.

The city sends a alarm letter to residents if they fall backside on the Arts Taxation and says taxpayers are sent to collections if they owe $100 or more.

Past outsourcing its dirty work and allowing a private debt collector to charge a 23% fee and nine percent involvement, the urban center gets these drove services free of charge.

"Information technology is a mutual exercise for tax agencies to use third political party drove agencies to pursue runaway tax debt," wrote Tyler Wallace, Portland taxation division manager in an email. "It is effective in increasing compliance."

Debt collectors that piece of work for the authorities don't have to piece of work within the confines of consumer protection laws, similar the Fair Debt Collection Practices Act (FDCPA), opening the door for aggressive tactics and higher fees.

"This kind of taxation is unique," warned Fuller, the attorney and consumer advocate. "Consumers don't have whatever protections under the law from abusive tactics to collect this type of debt."

The city said Professional Credit Services, the debt collector contracted to go later unpaid Arts Tax payments, complies with FDCPA. The revenue division admits information technology conducts no audits or reviews to monitor the collection agency's operation or practices.

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Source: https://www.kgw.com/article/news/investigations/portland-sent-14600-people-to-a-private-debt-collector-over-unpaid-arts-tax/283-c1a47640-bdc2-4f26-a788-5c62c2511966

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