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Payroll tax to affect all Oregonians starting in July

The final piece of the transportation package comes in the form of a payroll tax less than 1 percent.

Posted: Jun 27, 2018 6:16 PM

OREGON -- Starting Sunday, July 1, Oregonians will see a small percentage taken out of their paychecks to contribute to the statewide transit tax.

In this piece of the tax, $1 out of every $1,000 workers make will be taken out of their paychecks.

The Oregon Statewide Transit Tax is collecting revenue toward the investment and improvement of state transportation systems, both public transportation and highway projects. Learn more about the specific projects here.

Along with the payroll tax, legislators also implemented a gas tax, dealership privilege tax, registration and title fees and a bike tax.

The bike tax is a flat $15 added to the purchase of any bike of at least $200. An owner of one bike shop said this tax has been frustrating because people often don’t understand it.

"We probably spend even more time explaining what the tax is since they've never heard of something like this on just a single item," said Matt Ritzow, co-owner of Bicycle Way of Life.

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