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Payroll & Self-Employment Tax Information

Lane Transit District Boundary

If you have a question about your LTD tax status, please contact LTD at 541-682-6100 and staff will query the Regional Land Information Database of Lane County (RLID) to determine your status. 

LTD District Boundary Map (12MB)

Lane Transit District boundary maps have been provided in the Adobe (PDF) format and can be downloaded if you have the Adobe Acrobat Reader software. If you don't have the software, the Adobe Acrobat Reader is free and can be downloaded from Adobe's Acrobat Reader page or from Adobe's FTP site.


Payroll and Self-Employment Taxes

Payroll and self-employment taxes, which provide revenue for mass transit, are collected and administered by the Oregon Department of Revenue (DOR). Oregon Department of Revenue staff can be reached at 503-378-4988.

On January 1, 2013, the rate increased to .0069 ($6.90 per $1,000) of the wages paid by an employer and the net earnings from self-employment for services performed within the Lane Transit District boundary. Employers should apply the new rate with their reporting related to wages for the first quarter of 2013. Self-employed individuals should use the new rate when reporting earnings for 2013.

The 2003 Oregon Legislature provided Lane Transit District with the authority to increase the rate over 10 years to help pay for transit service throughout the region. The rate increases annually until the maximum of .007 ($7.00 per $1,000 of wages) is reached in 2014.  Below are the scheduled increases for the remainder of the phase-in period:

2013 - .0069       2014 - .007

Link to payroll tax information from DOR: http://egov.oregon.gov/DOR/BUS/transit-excise.shtml

Link to self-employment tax info from DOR: http://www.oregon.gov/DOR/BUS/IC-500-406.shtml

History of Tax Sources

A funding ordinance establishing a payroll tax on employers within the LTD service district was implemented in 1971. An ordinance establishing a comparable self-employment tax was established in 1994. The payroll tax rate cap was set at .6 percent or $6 per $1,000 of payroll.  LTD also receives "in-lieu-of" payroll tax subsidies from the State of Oregon, based on state employment within the service district. In 1985, the state legislature created a Special Transportation Fund through a tax on tobacco products. This funding provides a portion of the funding needed for transportation services to the elderly and persons with disabilities. LTD also continues to receive some funding from the federal government for assistance with fleet and facilities.  Though these funds are primarily capital funds used to replace buses, build transit stations, and install bus shelters, they may be used in limited ways to support operations.  

The 2003 State Legislature approved an increase in the maximum payroll tax rate to .7 percent or $7 per $1,000 of payroll.  The legislation required a phased implemenation of the rate change, with the maximum achieved in 2014 as shown in the chart above. 

The 2009 State Legislature approved an increase in the maximum payroll tax rate that can be charged by Lane Transit District and also has increased funding for elderly and disabled transportation for the current biennium.  These changes were proposed by Governor Kulongoski as part of a comprehensive transportation funding package, which includes increases in gas taxes, vehicle licensing fees, and vehicle registration fees.

 

Prior to this new legislation, the maximum payroll tax rate was .7 percent ($7 per $1.000 of payroll), and that rate could not be reached prior to 2014. The new legislation, which is contained in Senate Bill 34, allows for an eventual increase to .8 percent.  The increase in the rate to .8 percent can only be made after “the Board makes a finding that the economy in the district has recovered to an extent sufficient to warrant the increase in tax.”  It also requires that the increase be phased in over a ten-year period.  Full implementation would not occur until 2022 at the earliest. 

 

Please note that any actual increase in the rate must be authorized by the LTD Board of Directors.  LTD takes its role as a steward of public funds very seriously.  The Board will be very judicious in the use of this potential tax revenue. They will not take any action to increase the rate beyond the current planned progression without a finding, as required by law, that the local economy has recovered to an extent that supports the increase.  The Board will inform potential taxpayers of any payroll tax increase being considered and will provide opportunities for involvement in that decision. 

 

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