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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.

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.