Oregon's 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. Revenue from the bicycle excise tax goes into the Connect Oregon Fund to provide grants for bicycle and pedestrian transportation projects.
Which bicycles are taxable?
The tax is applied to the purchase of each new bicycle that meets all of the following criteria:
- Is exclusively human powered or is electric-assisted;
- Is new or not previously owned by a consumer;
- The retail sales price is $200 or more.
In 2019, House Bill 2592 clarified that bicycle does not include: carts, durable medical equipment, in-line skates, roller skates, skateboards, stand-up scooters, strollers designed for the transportation of children, trailer cycles or other bicycle attachments, or wagons.
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 nonprofit 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 vehicle and bicycle tax" in the Register & Apply section. You'll need the following information to complete the registration process:
- For the entity you're registering:
- Federal identifier [federal employer identification number (FEIN), Social Security number (SSN), or individual taxpayer identification number (ITIN)].
- Mailing address.
- For all company owners and officers:
- Federal identifier (FEIN, SSN, or ITIN).
- Mailing address.
- The date you started selling taxable bicycles, if it was after January 1, 2018 (the date the tax went into effect).
- A valid email address or your Revenue Online account login, if you already have one.
If you need help with the registration process or have any questions, please contact us at email@example.com 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 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. Returns and payments for purchases made after June 1, 2018 will be due 30 days following the date of purchase.
- 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.