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Common questions

Transit district payroll tax

  1. What are the transit district excise tax rates?

    TriMet rate is 0.007137, effective January 1, 2013.
    Lane Transit rate is 0.0069, effective January 1, 2013.

  2. What counties are included in the TriMet district?
    The TriMet district includes parts of three counties in the Portland area: Multnomah, Washington, and Clackamas.

  3. What area does the Lane Transit District (LTD) service?
    LTD serves the Eugene-Springfield Metro area. The district is approximately two-thirds of Lane County

  4. How often do I report and pay transit taxes?
    These taxes are paid and reported quarterly

  5. Are the transit taxes paid by deduction from employee wages?
    No, transit taxes are employer paid only and based on gross wages for all service performed inside the transit districts.

  6. How do I figure the transit taxes?
    Multiply the gross taxable payroll paid for work performed in the district by the current tax rate.

  7. Are household employees wages subject to transit taxes?
    No, household employee' s wages are exempt from transit taxes.

  8. Are wages paid to church employees subject to transit taxes?
    No, churches are exempt from paying transit taxes

  9. Are tips subject to transit taxes?
    Yes, tips are subject to transit taxes.

  10. Are non-profit organizations subject to transit taxes?
    Not all non-profit organizations are exempt from transit taxes. Only the organizations with 501(C)3 status are exempt. Non-profit organizations will need to send in a copy of the IRS determination. Hospitals are not exempt.

  11. Are 401K plans included in district payroll?
    Yes, contributions to deferred compensation plans are subject to TriMet and Lane Transit District taxes, including contributions to 401K retirement plans made at the election of the employee and matched by the employer.

  12. Are Section 125 cafeteria plans subject to transit taxes?
    No, Section 125 cafeteria plans are exempt from transit taxes.

  13. How are the transit taxes determined on truck drivers, salespeople and construction?
    Employees who are subject to withholding tax, are subject to transit tax. If an employee only works a portion of time in the transit district, then only that portion is subject to the tax. Transit taxes are determined by where the work is physically performed including jobsites and home locations.

  14. What is the difference between TriMet Excise Tax and TriMet Self-Employment Tax?
    The excise tax is paid by the employer. The self-employment tax is paid by the self-employed person.

  15. What numbers do I call with the following types of questions?

    Technical questions
    Oregon Department of Revenue, Business Division, Salem OR

    District boundary questions
    Tri-County Metropolitan Transportation District Office, Portland OR

    Lane Mass Transit District Office, Eugene OR