Oregon's new bicycle excise tax
The 2017 Oregon Legislature passed House Bill 2017, which included a new bicycle excise tax. The Oregon bicycle excise tax is a flat tax of $15, to be collected at the point of sale starting January 1, 2018. Revenue from the bicycle excise tax goes into the Connect Oregon Fund to provide grants for bicycle and pedestrian transportation projects.
What bicycles are taxable?
The tax is applied to the purchase of each new bicycle that meets all of the following criteria:
- It's designed to be operated on the ground on wheels.
- It's propelled exclusively by human power.
- Its wheels are at least 26-inches.
- The retail sales price is at least $200.
As the law is currently written, electric-assist bicycles are subject to the vehicle privilege tax rather than the bicycle excise tax. The tax would only apply to electric-assist bicycles sold by licensed vehicle dealers. Currently, electric-assist bicycles sold by bicycle retailers aren't subject to either tax; however, the Legislature could make changes to the law as early as February. Please check this page after the 2018 Legislative Session to find out if any changes were made.
What else do I need to know as a retailer?
- If you’re in the business of selling bicycles to consumers in Oregon—in-store or online—you’re responsible for collecting the tax from your customers.
- You must register with us before your first return and payment are due. See the "Registration instructions" section below for more information.
- You must provide your customers with an invoice, receipt, or other similar proof-of-sale documentation with a separate line showing the tax they paid.
- Returns and payments are due quarterly. See Returns and Payments below for more details.
- Keep your records on taxable sales for five years.
- There's no exemption for taxable bicycles sold to non-profit organizations or state agencies; however, those sold to federal entities are exempt.
Make sure you register with us before your first return and payment are due. You can't file or pay without being registered for a bicycle excise tax account. Once you're registered and you have a Revenue Online account, you'll be able to view and manage your bicycle excise account electronically.
To register, go to Revenue Online and click on "Register for transportation taxes" in the Quick Links. You'll need the following information to complete the registration process:
If you need help with the registration process or have any questions, please contact us at firstname.lastname@example.org or (503) 945-8120.
Returns and payments
Any tax collected must be held in trust to be remitted and electronically reported to the Department of Revenue on or before the last day of the month following the previous calendar quarter. Keep in mind that:
- You must file a return even if you don't collect any taxes during the reporting period.
- If you have multiple retail store locations that share the same federal employer identification number (FEIN), you'll only file one quarterly return and make one quarterly payment for all of those locations.
- You'll need to track the number of taxable bicycles sold each month of the quarter because that information will be required on the return.
File and pay electronically using Revenue Online.
||Quarter ending date
|1st — Jan-Feb-Mar
|2nd — Apr-May-Jun
|3rd — Jul-Aug-Sep
|4th — Oct-Nov-Dec
There is a 5-percent penalty if you don't pay by the due date. A 20-percent penalty is charged if you don't file a return within 30 days of the due date. Interest is added to any unpaid tax and calculated from the time the tax becomes due.
What else do I need to know as a consumer?
- If you pay the bicycle excise tax at the time of purchase, the retailer must give you an invoice, receipt, or similar proof-of-sale document showing the tax you paid on a separate line.
- If you don’t pay the bicycle excise tax at the time of purchase, you’re responsible for reporting the purchase and paying the tax directly to us. You can report and pay the tax electronically through Revenue Online. Returns and payments are due by the 20th day of the month following the month of purchase.