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County Commissioner Loretta Smith Cleared of Owing Back Taxes, Document Shows

Smith, who is running for City Council, provided documents showing a 2016 state tax lien was in error.

Commissioner Loretta Smith speaks after finishing second in the primary vote for Portland City Council in May. (Walker Stockly)
By Rachel Monahan

In July 2016, the Portland Tribune broke some big news about Multnomah County Commissioner Loretta Smith—despite making $101,000 a year, Smith owed the state back income taxes and her paycheck was being garnished.

Smith insisted the lien and garnishment were a mistake, but it would take nearly a year to resolve the situation.

On June 13, 2017, the Oregon Department of Revenue issued a corrected assessment: rather than owing the state $31,872 for tax year 2012, Smith owed just $49. (That $49 has long since been paid.) The error resulted from the mis-characterization of a property Smith sold—it was primary residence not a rental property, which had different tax implications, Smith has contended.

That correction by state tax officials vindicated Smith. To set the record straight, Smith, who is running for a city council seat,  provided proof of that correction today (see below).

Correction: Due to an editor's error, this post originally misstated the amount Smith owed.

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