This article is written by the Oregon Department of Revenue and published with permission. 

The new statewide transit tax—part of House Bill (HB) 2017 from the 2017 Legislative Session—becomes effective July 1, 2018.

HB 2017 requires all employers to withhold, report, and remit one-tenth of one percent (.001) of wages paid to their employees to the Department of Revenue. Employees include Oregon residents and nonresidents who perform services in Oregon.

If our records show that you’re subject to withholding state income tax from your employees’ wages, we’ll set up your statewide transit tax account for you. You’ll need to report this information and remit the funds you withheld quarterly (or annually if you are an agricultural or domestic employer), either electronically through Revenue Online or using a paper return. Starting in 2019, paper returns will be in the Combined Payroll Tax Report booklet and on our website. We encourage all taxpayers to file returns and pay taxes electronically through Revenue Online for faster, more efficient processing. If you don’t already have a Revenue Online account, you can sign up for one by going to www.oregon.gov/dor, clicking on “Revenue Online,” and following the sign-up instructions.

You can find additional information on the statewide transit tax on our website at www.oregon.gov/dor/business. We’ll be updating our website as we get closer to the effective date of this tax. You can also receive updates about this new tax, and payroll taxes in general, by subscribing to our Payroll Tax News email list, which is also available on our website.

If you have questions, please contact us at (503) 945-8100 or by email at payroll.help.dor@oregon.gov.

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