Arts Tax Increase Challenged in Tax Court
The Portland Metro Chamber filed a lawsuit against the city’s recent decision to raise the annual arts tax by 43%.
Updated on Oct. 1, 2026 in Cultural
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Portland taxpayers and the Portland Metro Chamber have taken the City Council to court over a May 2026 vote that raised the annual arts tax by 43%. The lawsuit, filed in Oregon Tax Court, seeks to halt the increase on the grounds that the Council lacks the authority to change the tax without a public vote.
Why it matters
The case centers on whether the City Council holds the power to modify voter-approved measures or if such changes must return to the ballot. A ruling against the city could set a legal precedent limiting how future taxes are indexed to inflation or adjusted for purchasing power.
The Arts Education and Access Tax, which generates approximately $12 million annually, was initially approved by 62% of voters in 2012. While the 43% increase was passed in May 2026, the city also exempted 40% of lower-income tax filers.
The players
Andrew Hoan
The CEO of the Portland Metro Chamber who is a lead plaintiff in the lawsuit.
Robert Taylor
The Portland City Attorney who maintains the city acted within its legislative authority.
Jamie Dunphy
The City Council President who originally proposed the changes to the arts tax.
The details
The Portland Metro Chamber argues that the City Council exceeded its legislative authority by increasing the $35 tax without direct voter approval. City Attorney Robert Taylor maintains that the Council holds concurrent legislative authority to modify such measures to keep pace with inflation. Plaintiffs are currently seeking a stay to prevent the collection of the higher tax rate while the litigation proceeds through the court.
Timeline
2012: Voters initially approved the Arts Education and Access Tax.
April 2026: Council President Jamie Dunphy proposed modifications to the arts tax.
May 2026: Portland City Council voted to approve the 43% tax increase.
September 24, 2026: The lawsuit was filed in Oregon Tax Court.
Beyond the Bridges
This lawsuit challenges the city's interpretation of the 2012 Arts Education and Access Tax. The case marks a significant conflict over whether established voter-approved measures grant the City Council ongoing authority to adjust tax rates for inflation.
For residents currently paying the $35 annual tax, the court's decision will determine whether that bill increases by 43% as scheduled. Taxpayers should continue to watch for updates from the Oregon Tax Court regarding the motion to stay enforcement.
The takeaway
The core issue for Portlanders to watch is the court's determination on the limits of the City Council's legislative power regarding voter-approved taxes. Follow the ongoing proceedings in the Oregon Tax Court to see if the planned tax increase remains in effect.
Further reading
For more on the intersection of local governance and city programming, visit our Cultural section.
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