First Oregon transit tax payments due Wednesday

The first quarterly returns and payments for the new statewide transit tax are due by Wednesday, Oct. 31, the Oregon Department of Revenue reminded employers Tuesday.

While employees pay the tax, Oregon employers are responsible for withholding it from employee wages, just like for personal income taxes. Employers can file their quarterly returns and remit the taxes withheld from employee wages either by mail or online.

To file and pay online: Go do the department’s website and click on “Revenue Online.” A Revenue Online account is required to file electronically. Electronic filers can upload a spreadsheet with the individual employee withholding details instead of adding each employee manually to the detail report. Once the return and detail report are complete, payment can be made via an electronic funds transfer (EFT).

To file and pay by mail: Download Form OR-STT-1, Oregon Quarterly Statewide Transit Tax Withholding Return, and Form OR-STT-2, Statewide Transit Tax Employee Detail Report, from the department’s website at www.oregon.gov/dor/forms. Complete both forms and send them to the address shown in the form instructions, along with a check or money order for the amount due. Please note: Starting in 2019, these forms will be available with the other payroll tax forms in the Combined Payroll Booklet.

Cash payments are also accepted, but only at the department’s main office in Salem. Field offices cannot accept cash payments.

The situation may be different for Oregon residents who work outside of the state. Some out-of-state employers may withhold this tax as a courtesy, but they aren’t required to. If they don’t, the employee will need to file an individual statewide transit tax return and pay the tax due when they file their annual Oregon personal income tax return. Both paper and electronic filing and payment options will be available starting in January 2019.

Oregon’s statewide transit tax is one-tenth of one percent (.001) of wages earned–or $1 per $1,000 in wages. The tax was part of House Bill 2017 from the 2017 Legislative Session, also known as the “transportation package.” Revenue from the statewide transit tax will go to finance investments in and improvements to public transportation throughout Oregon, except for those involving light rail.

Visit www.oregon.gov/dor to get forms, check the status of a refund, or make payments. You can call (503) 378-4988 or (800) 356-4222 (toll-free) or email questions.dor@oregon.gov for additional assistance. For TTY for hearing- or speech-impaired, call (800) 886-7204.