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.
- It's wheels are at least 26-inches.
- The retail sales price is at least $200.
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 provide your customers with an invoice, receipt, or other similar proof-of-sale documentation with a separate line showing the tax they paid.
- 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 tax excise account. Registration instructions will be available on this page by January 2018.
- Returns and payments are due quarterly. See Returns and Payments below for more details.
- Keep your records on taxable sales for five years.
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 paying it to us by the 20th day of the month following the date of purchase.
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.