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.
Benefits from the Tax?
provides transit services in Canby with links to
other cities. Increased and improved public transportation
benefits riders and the businesses where they work
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
is the Tax Rate?
The tax rate is 0.6% ($6 for every $1000 of taxable
wages and/or self employment net income).
Factor = .0060
are Taxable Wages?
The definition used for taxable wages
comes from ORS 267.380 and includes all wages except
contributions to a qualified cash or deferred compensation
plan are not subject unless employer is making
- Cafeteria Plans
Must Pay This Tax?
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
IRC SS 1402.
is Exempt From this Tax?
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
from such activities).
Insurance agents are exempt
because of Oregon law limitations (ORS
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.
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.
No later than the last day of the month following
the calendar year quarter:
||Deadline to file is:
Do I Start?
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.
are the Penalties and Interest?
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
|Alternative formats available upon request
November 21, 2016