Transit Tax

If you have received a Pre-Collection Notification and dispute the amount of the estimated tax due, please complete a return form for each period disputed and submit with payment including penalties and interest within 30 days of the date of the notice. 

If you have received a Collection Notification or contact from a collections agency and dispute the amount of the estimated tax due, please complete a return form for each period disputed and submit to the tax office by email or fax.  The amended amount due including penalties, interest and collection fees will be calculated and you will be notified of the amount you will need to pay to the collections agency. 

Forms must be submitted even if there is zero tax due.  Forms and questions can be directed to transitpayrolltax@canbyoregon.gov 


City of Canby
PO Box 930
Canby, OR 97013
503-266-0687
Fax: 503-266-1799
   


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. Quarterly Payroll Tax Return
. Self Employment Instructions and Return (Fillable)
  Note: Mozilla Firefox may require that you download & save this document to enable form fields (right click "save as" to save the document on your computer, or click on your browser's image to download
. Self Employment Tax Brochure
. Payroll Tax Brochure
. Penalty Waiver Flyer
. Apportionment Instructions and Worksheet
. Urban Growth District Boundary Map



General

The Transit Tax was established by City Ordinance 1081 in December 2001. Taxes are calculated on applicable wages and/or self employment net income earned beginning on January 1, 2002.  The transit tax is an "employer" tax and cannot be withheld from an employee's earnings.  The tax finances the locally operated transit system and cannot be used for any other purpose.  City general fund monies will not be used to fund the transit system.

Who Benefits from the Tax?

The system provides transit services in Canby with links to other cities. Increased and improved public transportation benefits riders and the businesses where they work and shop.  Those who are unable to drive, and those who like to have a transportation choice, benefit form having the option of a city transit service.  People who choose to drive may see reduced traffic as ridership increases.

What is the Tax Rate?

The tax rate is 0.6% ($6 for every $1000 of taxable wages and/or self employment net income).
Multiplication Factor = .0060

What are Taxable Wages?

The definition used for taxable wages comes from ORS 267.380 and includes all wages except the following:

  • Employer contributions to a qualified cash or deferred compensation plan are not subject unless employer is making a matching 401k contribution.
  • Cafeteria Plans
Who Must Pay This Tax?

Every corporation, firm, association, or person doing business within Canby's Urban Growth Boundary is subject to this tax.  NOTE: Self-employment earnings are those earnings reported on federal Schedule SE, and defined in
IRC SS 1402.

Who is Exempt From this Tax?

Institutions exempt from taxation under IRS section 501(c)(3).  A copy of the organization's "exemption certificate" must be on file with the city.  (NOTE: 501(c)(3) organizations operating profit-based activities such as a daycare or bookstore are subject to the tax on the portion of the employees' wages directly incurred from such activities).
Insurance agents are exempt because of Oregon law limitations (ORS 731.840).
Ministers or members of a religious order performing religious services as a employee are exempt. However, compensation received for performing religious services as an independent contractor is taxable through the individual's net earnings from self-employment.

Apportionment of Tax

Employers located outside the Canby Urban Growth Boundary are subject to the Payroll and self-employment tax if any employee, commission merchant, or commission employee does business in the local transit area.  Taxpayers do not pay both Canby Transit Tax and Tri-Met Tax on the same taxable wages. Wages should be prorated and the applicable amounts paid to each district.

When To File?

No later than the last day of the month following the calendar year quarter:

Quarter ending: Deadline to file is:
March 31 April 30
June 30 July 31
September 30 October 31
December 31 January 31
Where Do I Start?

Upon obtaining a Canby business license, your Tax ID number will be used as your Transit Tax account number.  Transit tax remittance forms are available below. Please make copies as needed and remit quarterly with your payment.

What are the Penalties and Interest?

Late payment or nonpayment will result in a penalty of 10 % of the tax due for the first 30 days past due.  An additional penalty of 15 % will be assessed on the tax due over 30 days.  Fraudulent tax returns or intent to evade will result in an additional 25 %  penalty.  Interest shall be assessed at the rate of 1.5 % per month.  Legal fees and cost associated with the collection of tax will be the liability of the taxpayer.

A fee of $5.00 (not to exceed $20.00 per instance) will be assessed for each 30 days or fraction thereof if a payment is submitted without a return unless the return is received within five business days of receiving the payment.

Questions: Please call the Transit Tax Department
at 503-266-0687
Alternative formats available upon request

Last update: November 21, 2016

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