New Plan: Turning Streaming Fees into Live‑Music Funds

Portland is poised to shake up its long‑standing arts tax. Council President Jamie Dunphy argues the current $35 yearly levy on adults earning over $1,000 is outdated and poorly managed. He plans to reallocate some of the unused $9 million that sits in reserve, aiming to return about $1.5 million a year to nonprofits for the next two years.

Key Elements of the Proposal

• New Payment Method

• Shift from an annual bill to direct paycheck deductions, mirroring two other city taxes.

• Income‑Based Adjustments
• Exempt low‑income residents.
• Increase the fee to $50 for high earners (cutoff not yet defined).
• Annual inflation adjustments to keep pace with costs.

• Streaming Surcharge
• Introduce a surcharge on streaming giants such as Netflix and Spotify.
• Follow Chicago’s example, targeting $10 million annually.
• Funds earmarked for live performances—music, dance, and theater—to draw people back into community venues.

Rationale

• Underfunded Arts Programs

• The city’s arts initiatives have been hit hard, especially after a 50 % cut to nonprofits last year.

• Economic and Social Benefits
• Encouraging public gatherings could boost the local economy and strengthen social connections.

Challenges

• Many residents already feel squeezed by rising living costs.
• Any tax increase may face strong opposition.