Three taxes associated with the $5.3 billion transportation package that was signed into law over the summer will be taking effect Jan. 1, with one more targeting wages coming later in the year.
The bi-partisan transportation plan will help fund projects across the state. In Salem it will provide $85.7 million over nine years for the expansion of Cherriots bus services and additional money for a seismic retrofit of the Center Street Bridge.
But the millions in funding outlined in the law require some way to pay for them, which includes a handful of new taxes.
"We're communicating directly with affected sellers about new taxes," said Eric Smith, administrator of the Department of Revenue Business Division.
Bicycle excise tax
Starting the first day of 2018, new bicycles with wheels larger than 26 inches will come with a $15 excise tax, if they have a retail price of $200 or more.
The balance of the collected tax, after subtracting administrative and enforcement costs and any refunds, will be diverted to the Connect Oregon Fund, which is responsible for awarding grants to bicycle and pedestrian transportation projects.
Projects initially slated to receive money from this fund include intermodal transportation facilities in Millersburg and Malheur County, which will receive $25 million and $26 million, respectively.
Vehicle privilege tax
New vehicle dealers will see a tax of 0.5 percent for having the "privilege" of selling cars in the state of Oregon. The law says dealers can pass that tax onto consumers and don't have to include it in the offering price.
Vehicles that qualify for this tax must have 7,500 or fewer miles and a gross weight of 13 tons or less, and includes campers, buses, motor homes, truck trailers and mopeds.
Businesses report and pay the tax quarterly, the first return due by April 30.
Industry groups requested in November that the Supreme Court overturn this tax because they say it violates the state Constitution.
Vehicle use tax
This tax applies to vehicles purchased out of state, either by Oregon residents or that will by used in state and, had they been purchased in state, would be subject to the "privilege" tax.
The tax of 0.5 percent can be paid by the consumer or the dealer, but if the dealer doesn't assess it at sale, the consumer must pay it to the Department of Revenue directly.
If the person buying the vehicle wants to register or title it, they will need a certificate showing they paid this tax.
Statewide transit tax
The most broad-based of the new taxes is a 0.1 percent tax on the wages of all Oregonians and non-residents who work in the Beaver State. The tax period begins no earlier than July 1.
Funds received through the tax will go directly to the Statewide Transportation Improvement Fund, earmarked for improvements to public transit (not including light rail).
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