When PDX first started this tax, Turbo Tax had no place for it as a local tax. I tried to declare it on my Oregon taxes and got audited because my fed return and my state return was out of balance by $70, the amount I had paid to Portland.
When I talked to Oregon IRS, the guy said, "Oh, well most people don't pay that tax anyway."
Subsequently, I have included the Portland Arts Tax as a gift to charity. Since I itemize, it works out the same as if it were a local tax. I and some friends have been doing this for the past several years, and it keeps our fed and state returns in balance. I don't know if Turbo Tax has figured it out yet, and in my case, I don't care. I know that I am paying my arts tax as required. And I get some manner of credit with the feds and state.
My work around works if you itemize.
Peace to you.
"Taxes are the price we pay for civilization." Oliver Wendel Holmes, Jr
