Text Size:   A+ A- A   •   Text Only
Find     
Site Image
Transit self-employment taxes

Effective immediately
Filers with more than one business may offset Schedule C gains with Schedule C losses
.


General information

What are Transit District Self-employment taxes?

The Oregon Department of Revenue (DOR) is responsible for collecting Tri-County Metropolitan (TriMet) Transportation District and Lane Transit District (LTD) self-employment taxes. This tax is applied to the self-employment earnings of taxpayers doing business, or providing services within the transit districts.
 

Who must file and pay?  
Individuals—Anyone who has self-employment earnings from business or service activities carried on in the TriMet or LTD districts may need to file a return and pay this tax. This includes self-employed individuals, sole proprietors, independent contractors, and real estate salespeople.
 
Partnerships—Partnerships are not subject to the tax; however, the partnership may choose to file one transit self-employment tax return and pay the tax for all of its individual members.
 
Partnership Apportionment—If your partnership chooses to file and pay the transit self-employment tax for all the individual partners, you must figure the tax based on net earnings (including partners' guaranteed payments), from self-employment as reported on federal Form 1065. The apportionment is based on the partnership as a whole, not the individual partner.

Example: Self-Employment earnings from Partnership
Form 1065.........................................
 $ 2,000,000.00
  Sales within Transit district...................  $ 30,000.00
  Total Partnership Sales.........................  $ 3,000,000.00
  Transit Apportionment..........................  0.01
  Net self-employment earnings...............  $ 20,000.00

Complete Form TSE-AP, Transit Self-Employment Tax Apportionment Worksheet, 150-500-051, Schedules AP-1 or AP-2, to determine the apportionment percentage. Most taxpayers will use Schedule AP-1, unless you meet the following exception.

Exception: Use Schedule AP-2 if you are an electing telecommunications or utility taxpayer.
 
Remember: If you meet the exception, please check the box "Utility or telecommunications" on the front of Form TM or Form LTD.
 
The election for taxpayers primarily engaged in utilities and telecommunications to apportion income using the double weighted sales factor formula provided in ORS 314.650 (1999 edition) will continue to apply. However, this election may later be revoked. 
 

Are there exemptions to paying this tax?
The following are not subject to this tax:
  • C and S corporation distributions.
  • Ministers—applies only to compensation received for religious services.
  • Insurance agents—applies only to insurance-related income.
 


What are the tax rates?

  2014 2013 2012  2011 2010 
2009
TM
.007237​ .007137​ .007018 .006918 .006818 .006718
LTD .007000​ .006900 .006800
.006700
.006600
.006500



How do we determine self-employment income?
Self-employment earnings are those reported on your individual federal Schedule SE, line 3, as defined in IRC § 1402. When determining the amount of your self-employment earnings subject to the transit self-employment tax, one $400 exclusion is allowed per taxpayer no matter how many businesses an individual may have.
 
If a taxpayer has more than one business included on federal Schedule SE, you may net the gains and losses of separate businesses. Please note this is a change of law interpretation and applies to any tax year that is still open for amendment.


 
TriMet logo


Use ZIP codes below as a guideline to determine if you have self-employment earnings in the Portland Metropolitan area, which includes parts of
Multnomah, Washington, and Clackamas counties. For specific boundary questions, visit TriMet District or call TriMet at (503) 962-6466.


ZIP codes completely in TriMet Transit District
97005        97068        97210        97219        97232
97006   97077   97211   97220   97233
97008   97201   97212   97221   97236
97024   97202   97213   97222   97239
97027   97203   97214   97223   97256
97030   97204   97215   97225   97258
97034   97205   97216   97227   97266
97035   97206   97217   97229   97267
97036   97209   97218   97230    
     ​            

PO Box ZIP codes completely in TriMet Transit District
97075
97238 ​97280 97290 ​97296
97076 97240 ​97281 ​97291 97298
97207 97242 ​97282 97292
​97208 97268 97283 97293
97228 97269
97286 97294



ZIP codes partially in TriMet Transit District​ ​ ​ ​ ​
97007        97060        97116
97009   97062   97123
97015   97070   97124
97019   97080   97140
97022   97086   97224
97023   97089   97231
97045   97113  


   



Lane Transit District logo



Use the ZIP codes below as a guideline to help determine if you have self-employment earnings in the
Eugene-Springfield urban and rural areas served by Lane County Transit District. For specific boundary questions go to Lane Transit District and click on "Payroll Tax & Self-Employment Tax Information."


City ZIP code
Blue River 97413
Coburg 97408
Cottage Grove 97424
Creswell 97426
Dexter 97431
Elmira 97437
Eugene 97401 to 97405
Eugene 97408
Eugene 97440
Fall Creek 97438
Finn Rock 97488
Goshen 97405
Jasper 97438
City ZIP code
​Junction City ​97448
Lancaster 97448
Leaburg 97489
Lowell 97452
Maywood 97413
McKenzie Bridge 97413
Pleasant Hill 97455
Springfield 97475, 97477, 97478
Thurston 97482
Trent 97431
Veneta 97487
Vida 97488
Walterville 97489
 

Additional resources

Contact us by email with additional questions. We usually reply within two business days. You may also contact us by phone at (503) 378-4988, or toll-free from Oregon at (800) 356-4222.
 
If you have employees, see information on Employer Payroll Transit Tax or call (503) 945-8091.