New statewide transit tax will be implemented at UO July 1

A transportation bill passed during the 2017 Oregon legislative session includes a new statewide transit tax. Starting July 1, all Oregon employers are required to withhold one-tenth of 1 percent of their employees' wages.

Employees are subject to the tax if they are Oregon residents, regardless of where the work is performed, or nonresidents who perform services in Oregon.

There is no action required by UO employees. The payroll office will automatically begin withholding this tax from all pay events that occur on or after July 1.

Employees who aren't subject to regular income tax withholding due to high exemptions, wages below the threshold for income tax withholding or other factors are still subject to statewide transit tax withholding. 

Revenue from the tax will go into the Statewide Transportation Improvement Fund to finance investments and improvements in public transportation services, except those involving light rail.

Additional information can be found on the Oregon Department of Transportation website​.

Contact the payroll office at 541-346-3151 or payroll@uoregon.edu with any questions.