4 new Oregon taxes take effect in 2018

Oregon State Capitol. (KATU File Photo)

SALEM, Ore. - Four new taxes take affect in 2018.

The new taxes were created by the 2017 Legislature as part of House Bill 2017, the transportation package.

"We're communicating directly with affected sellers about new taxes relating to some bicycles and vehicles, which begin January 1, 2018," said Eric Smith, Business Division administrator for the Oregon Department of Revenue. "There will be more outreach to employers about the new statewide transit tax as we approach its start date of July 1, 2018."

Bicycle excise tax

Oregon's bicycle excise tax is a flat $15 paid by the consumer at the time of purchase.

The tax applies to bicycles that are:

  • New bicycles
  • Have two or more wheels that are 26 inches or larger
  • Exclusively human powered and designed for use on the ground.
  • Have a retail purchase price of $200 or more.

Vehicle privilege tax

A vehicle privilege tax on new vehicles in Oregon charges dealers for the privilege of selling cars. The tax is one-half of one percent (.005) of the retail sales price of a new vehicle.

That includes:

  • Vehicles with 7,500 miles or fewer and a gross vehicle weight rating (GVWR) of 26,000 lbs. or less.
  • Recreational vehicles and motorcycles.
  • Lease sales of new vehicles.

Vehicle use tax

The vehicle use tax applies to "vehicles purchased outside of Oregon by Oregon residents or for use in Oregon," in lieau of the vehicle privilege tax. "The tax may be paid by the out-of-state dealer or the consumer," the Oregon Department of Revenue said in a statement, "and it equals one-half of one percent (.005) of the retail sales price of the taxable vehicle."

Consumers will receive a certificate indicating they have paid the tax. The certificate will be needed to register the car with the Oregon DMV.

If the tax is paid directly by the consumer, they have until the 20th day of the month following the month in which the vehicle was purchased.

Statewide transit tax

The transit tax takes effect statewide on July 1, 2018. The tax will be one-tenth of one percent (.001) of the wages of Oregon residents, regardless where they work; and non-residents who work in Oregon.

Visit www.oregon.gov/dor for more information about the new taxes.

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