A new year will also ring in new taxes in Oregon.
The Oregon Department of Revenue is reminding citizens that the taxes created to pay for the state’s new $5.3 billion transportation package kick in next year.
The package, passed by the legislature this summer, will provide billions of dollars in upgrades to the state’s transportation infrastructure, but the state must raise the revenue to pay for it.
Starting Jan. 1, a flat $15 fee will be assessed on each bicycle with at least 26-inch wheels sold for more than $200. Businesses will collect the money during the sale and turn it over to the state on a quarterly basis.
Two new taxes will be levied on purchases of new vehicles in January. A vehicle privilege tax, applied to car dealers in Oregon, equals .5 percent of the retail sale price of new vehicles, including RVs, motorcycles, vehicles weighing 26,000 pounds or less and leases on new vehicles. A vehicle use tax, also .5 percent, is applied to vehicles in the same categories that are purchased outside of Oregon but will primarily be used in Oregon or by an Oregon resident.
Starting July 1, a statewide transit tax will take one tenth of one percent of the wages of Oregon residents and anyone who works in Oregon. Oregon employers are required to deduct the tax, and Oregon residents who work outside of Oregon will be required to self-report and pay the tax when they file their income tax returns.
Businesses that sell new vehicles and bicycles, as well as Oregon employers who will be responsible for deducting the transit payroll tax, are responsible for knowing the new laws, which they can find in more detail at www.oregon.gov/dor.
“We’re communicating directly with affected sellers about new taxes relating to some bicycles and vehicles, which begin January 1, 2018,” Eric Smith, Business Division administrator for the Department of Revenue, said in a statement. “There will be more outreach to employers about the new statewide transit tax as we approach its start date of July 1, 2018.”
The state’s gas tax will also be raised by four cents per gallon in January, and vehicle registration fees at the Department of Motor Vehicles will increase by $13.
The Oregon Department of Transportation’s Region 5 covering Eastern Oregon will receive extra funding for projects out of the revenue raised, and counties and cities will see their street funds increase via the gas tax increase. Projects specifically earmarked for grants in the package include several local projects, including upgrades to North First Place in Hermiston, the paving of Ott Road and widening of Airport Road around the Eastern Oregon Trade and Event Center, a new road at the Port of Umatilla, a rail project at the Port of Morrow, road improvement projects in Heppner and Milton-Freewater, and improved access to the former Umatilla Chemical Depot.
Contact Jade McDowell at email@example.com or 541-564-4536.