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 |
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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 doubleweighted 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:
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C and S corporation distributions.
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Ministers—applies only to compensation received for religious services.
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Insurance agents—applies only to insurance-related income.
What are the tax rates?
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2012 |
2011 |
2010
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2009
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2008
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| |
TM
|
.007018 |
.006918 |
.006818 |
.006718 |
.006618 |
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LTD |
.006800 |
.006700
|
.006600
|
.006500 |
.006400 |
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, only include those businesses from line 3 of your federal Schedule SE that have net earnings. Do not use a business with a net loss to offset a business with net earnings.
Use the ZIP codes below as a guideline to help 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 go to TriMet District or call TriMet at 503-962-6466.
ZIP codes completely in TriMet Transit District
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97005
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97068
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97210
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97219
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97232
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97006
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97201
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97211
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97220
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97233
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97008
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97202
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97212
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97221
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97236
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97024
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97203
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97213
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97222
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97239
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97027
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97204
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97214
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97223
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97258
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97030
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97205
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97215
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97225
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97266
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97034
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97206
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97216
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97227
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97267
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97035
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97208
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97217
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97229
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97268
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97036
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97209
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97218
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97230
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ZIP codes partially in TriMet Transit District
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97007
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97055
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97113
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97009
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97060
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97116
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97015
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97062
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97123
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97019
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97070
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97124
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97022
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97080
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97140
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97023
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97086
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97224
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97045
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97089
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97231
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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."
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City
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ZIP code
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Blue River
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97413
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Coburg
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97408
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Cottage Grove
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97424
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Creswell
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97426
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Dexter
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97431
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Elmira
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97437
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Eugene
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97401 to 97405
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Eugene
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97408
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Eugene
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97440
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Fall Creek
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97438
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Finn Rock
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97488
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Goshen
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97405
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Jasper
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97438
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Junction City
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97448
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Lancaster
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97448
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Leaburg
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97489
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Lowell
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97452
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Maywood
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97413
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McKenzie Bridge
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97413
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Pleasant Hill
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97455
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Springfield
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97475, 97477, 97478
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Thurston
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97482
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Trent
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97431
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Veneta
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97487
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Vida
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97488
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Walterville
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97489
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Forms and Payment Vouchers
FAQ's - Transit Self-Employment Taxes
For more information, e-mail us at TSE.Help.DOR@state.or.us, most e-mails will be returned within two business days, or call 503-378-4988, or toll-free from Oregon at 1-800-356-4222.
If you have employees, see information on Employer Payroll Transit Tax or call 503-945-8091.
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