The 2017 Oregon Legislature passed House Bill 2017, which included the new statewide transit tax eff

The following is a new bill (HB 2017) that takes effect July 1, 2018:

The 2017 Oregon Legislature passed House Bill 2017, which included the new statewide transit tax. On July 1, 2018, employers and payers must start withholding the tax (one-tenth of 1 percent) from:

• Wages of Oregon residents (regardless of where the work is performed).
• Wages of nonresidents who perform services in Oregon.
• Periodic payments made under ORS 316.189, not including retirement income paid to nonresidents from an Oregon source.

The statewide transit tax is calculated based on the employee's gross wages before any exemptions or deductions. 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