Businesses

Transportation package taxes

The 2017 Oregon Legislature passed House Bill 2017, which included four new taxes that go into effect in 2018. 

Use Revenue Online to file a return, make a payment, register for a tax account, or get a certificate showing payment of the vehicle use tax to bring to the DMV.

Bicycle excise tax—January 1, 2018

The bicycle excise tax is a flat tax of $15, to be collected at the point of sale on bicyles meeting the following criteria: 

  • Is exclusively human powered or (effective June 2, 2018) is  electric assisted,
  • Is new or not previously owned by a purchaser,
  • The retail sales price is $200 or more, and
  • If sold between January 1, 2018 and June 1, 2018, has 26" or larger wheels.

Vehicle privilege tax—January 1, 2018

The vehicle privilege tax is a tax on the privilege of selling vehicles in Oregon. Dealers are responsible for paying the tax, which is one-half of 1 percent of the retail sales price of vehicles with 7,500 miles or less and a gross vehicle weight rating of 26,000 pounds or less and not previously registered in Oregon. 

Vehicle use tax—January 1, 2018

The vehicle use tax, which is one-half of 1 percent of the retail sales price, applies to Oregon residents and businesses that purchase vehicles from dealers located outside of Oregon with 7,500 miles or less and a gross vehicle weight rating of 26,000 pounds or less and not previously registered in Oregon.

Statewide transit tax—July 1, 2018

On July 1, 2018, employers must start withholding the statewide transit tax —which is one-tenth of 1 percent—from:

  • Wages of Oregon residents (regardless of where the work is performed).
  • Wages of nonresidents who perform services in Oregon.