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Transit Self-employment Taxes (Home)

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


General
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 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:
  • 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?
 
  2013 2012  2011 2010 
2009
 2008
  TM
.007137​ .007018 .006918 .006818 .006718  .006618
  LTD .0069 .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, 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 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
 

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

 

 

 

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

 




P.O. 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
 



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

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


Forms and Payment Vouchers
 
FAQs - Transit Self-Employment Taxes

 
For more information, e-mail us at TSE.Help.DOR@oregon.gov. 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.