Series Title (Agency Series #): Description, Retention (Legal Citation)

Multnomah County Personal Income Tax System Records (ITAX-001(a) and ITAX-001(b) and ITAX-001(c)): This system consists of records documenting the withholding, collection, and refund of the Multnomah County personal income tax (ITAX).The tax was instituted by Measure 26-48 and covers income earned by Multnomah County residents during calendar years 2003-2005. The records keeping system consists of a document imaging system [note: currently not in place] that will collect all related information and make it available to both the City of Portland Bureau of Licenses, which is managing the tax collection, and the Multnomah County Finance Program, which is responsible for tax administration and accounting. Once records have been scanned and verified, all original documents will be destroyed.

Withholding records document employer withholding of ITAX and the remittance of this withholding to the county. Employee withholding is not required but employers may provide it as a payroll service. Records include quarterly and annual withholding reports, tax payment coupons, EFT transaction authorizations, and supporting documentation.

Collection records document the determination of taxes owed and paid by each taxpayer. Records include annual ITAX tax returns, quarterly estimated tax payment coupons, record of payment (usually by check), extensions, and other forms that may be developed to assist in the collection of taxes. These are the only required forms, but there may be associated supporting documentation included as well, including taxpayer correspondence. There may also be records associated with the collection past due taxes through collection agencies, bankruptcy proceedings, or related activities.

Refund records document the return of overpaid taxes to individual taxpayers. Refund checks are generated by the county finance program and may also include supporting documentation.

Additionally, tax accounting information is maintained in the county's SAP system. This information includes transaction records for tax payment receipt and distribution, Oregon Department of Revenue reports and supporting documentation, journal and ledger entries, and other records required to account for tax funds received and spent.

Retention: ITAX-001(a) Once the documents have been imaged, indexed, *and* verified, the paper copies may be destroyed and the electronic image and associated indexes must be retained for 7 years. ITAX-001(b) Records related to past due tax collections must be retained 3 years after account is closed or written off. ITAX-001(c) ITAX accounting records must be retained for 10 years. (2003-0035/001)