Lane Transit District
The Oregon Department of Revenue administers tax programs for the Lane County Mass Transit District (LTD). Nearly every employer who pays wages for services performed in this district must pay transit payroll tax.
The transit tax is imposed directly on the employer. The tax is figured only on the amount of gross payroll for services performed within the Lane Transit District. This includes traveling sales representatives and employees working from home.
Who must file and pay?
All employers, including nonresident employers, who are paying wages earned in the LTD districts must register and file with the Oregon Department of Revenue. Wages include all salaries, commissions, tips, bonuses, fees, payments to a deferred compensation plan, or other items of value.
Your payroll service may not be aware that you have employees working in the transit districts. If so, you need to contact the service regarding your reporting and payment responsibility.
When to file the transit tax
Your transit tax is reported quarterly using the
Oregon Quarterly Tax Report (Form OQ).
Make your payment using the payment coupon, Form OR-OTC-V, or through the department's electronic fund transfer (EFT). For EFT information, call 503-945-8100 option 4 then option 1.
How to figure the transit tax
Multiply the gross taxable payroll earned within the transit district by the current transit rate. The current rate should be printed in the TriMet/LTD portion of the
Oregon Quarterly Combined Tax Report (Form OQ).
Exempt payroll
The following are exempt from transit payroll taxes:
- Federal credit unions.
- Public school districts.
- 501(c)(3) nonprofit and tax-exempt institutions (except hospitals).
- Insurance companies (except domestic insurers).
- Domestic service in a private home.
- The following are exempt from LTD, but subject to TriMet taxes.
- Public education districts.
- Public special service and utility districts.
- Port authorities.
- Fire districts.
- City, county, and other local governments.
For more definitions of exempt payroll for payroll taxes, refer to the
Oregon Employers Guide.
ZIP code list
Use this list as a guideline to help determine if you have employees in the Lane Transit District. Some ZIP codes may not coincide with the district boundaries. For Lane Transit boundary information, call LTD, 541-682-6100.
City ZIP code
Lane Transit District rate
Frequently Asked Questions
Yes, contributions to deferred compensation plans are subject to transit
district payroll taxes.
No, household employees’ wages are exempt from transit district payroll
taxes.
Not all non-profit organizations are exempt from these transit
taxes. Only the organizations with 501(C)3 status are exempt. Non-profit
organizations need to send us a copy of the IRS determination. Hospitals are
not exempt. The statewide transit tax is not included in this exemption.
No, Section 125 cafeteria plans are exempt from transit district
payroll taxes.
Yes, tips are subject to transit district payroll taxes.
No, transit district payroll taxes are employer paid and based on
gross wages for service performed in the transit districts.
Employees who are subject to withholding tax are subject to transit
district payroll tax. If an employee only works a portion of time in the
transit district, then only that portion is subject to the tax. Transit
district payroll taxes are determined where the work is performed,
including jobsites, and home locations.
Multiply the gross taxable payroll paid for work performed in the
transit district by the current tax rate. The rates for TriMet and Lane Transit
appear above.
Depending on where your employees perform their work (office, job site,
home, etc.), they could be subject to either the TriMet Transit Payroll Tax or
the Lane Transit Payroll Tax. For more information, see publication Oregon Transit Taxes for Employers.