Oregon Bike Tax Update

You may have heard about the new $15 tax on bikes of $200 or more in Oregon, which has generated questions and concerns within our community. Here’s “the rest of the story…”

Alex Logemann, on behalf of the BPSA/PeopleForBikes joint Legislative Monitoring effort, worked for months with the The Street Trust and local bike businesses to minimize the impact of this tax on our industry and ensure that new investments in bike facilities dramatically outweigh the revenue collected from the tax.

The bike tax was included within a $5.3 billion transportation funding package. Lawmakers originally proposed a 5% tax on bikes retailing for $500 or more. After immediate push-back by Alex and our Oregon allies, legislators reduced the tax to 3%. Following a concerted campaign during June and July, the tax was rolled back to a flat $15, and the qualifying amount to $200.

Amending the bike tax to a flat fee eliminates the potentially disastrous impact of a percentage-based tax on high-end bike sales, reduces our real tax burden over time, and spreads the burden out to a wider range of retailers.

A critical aspect of this bill that received less coverage than the tax itself: The projected $1.2 million in annual revenue goes into a pool of over $22 million of annual funding to build more bike facilities in Oregon. Great job, Alex, and thanks to BPSA members, these are your dues dollars at work!