United States

Oregon: Will New Bike Excise Tax Deflate Oregon Riders?

Oct 30, 2017
From KPMG TaxWatch

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The Oregon Department of Revenue recently issued guidance reminding bricks and mortar and online retailers that the country’s first statewide tax on bicycles will be effective soon. This flat $15 per bicycle excise tax is required to be collected at the point of sale starting January 1, 2018. The tax is applied to each new bicycle sold that meets the following criteria: (1) it is designed to be operated on the ground on wheels; (2) its propelled exclusively by human power; (3) its wheels are at least 26 inches; and (4) the retail sales price is at least $200. Retailers making sales of bikes meeting these criteria must register with the Department to establish a bicycle excise tax account and must report their bicycle excise tax on a quarterly basis. The first return is due April 30, 2018 for the quarter ending March 31. A five percent penalty is imposed if the tax is not remitted by the due date. A twenty percent penalty is imposed if a return is not filed within 30 days of the due date. Customers that purchase bicycles upon which the tax is not collected are required to remit it to the Department by the 20th day of the month following the date of purchase. Revenue from the bicycle excise tax goes into the Connect Oregon Fund to provide grants for bicycle and pedestrian transportation projects. Please stay tuned to TWIST for future updates on new state taxes!

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.