Transit Tax Information
Sandy’s public transit system is supported by a local business tax per Ordinance No. 2012-10. The business transit tax is assessed on all businesses and is an employer paid tax. Sandy Municipal Code Chapter 5.05 provides the details for this tax. All forms of taxable compensation are subject to the tax. Transit service information, the ordinance and payroll tax forms are also available on the website for Sandy Area Metro.
Self-employed business owners and partnerships must file and remit payment on net earnings by the same date the federal tax is due, April 15 of the year following the year for which you are reporting. If your business is a sole proprietorship or partnership and you have employees, you will be assessed both quarterly for your payroll and annually for your net earnings as they are reflected on the federal 1040 Form or 1065 Form .
If you have a corporation, you must file and remit payment quarterly on your business payroll and all forms of compensation (including officers). Payroll tax remittance is due within 30 days from the end of each quarter. Quarters are determined on a calendar year basis as so: January-March; April-June; July-September; October-December.
For your convenience, some highlights of the ordinance are:
- The tax rate is 0.0060, or six-tenths of one percent of payroll. TriMet's transit tax, by comparison, is assessed at 0.007137 of payroll as of January 1, 2013.
- The City of Sandy collects and administers its payroll tax directly.
- Payroll taxes for each quarter are due within 30 days of the end of the quarter.
- The only exception is for sole proprietors or partnerships that have no payroll or employees.
- Net earnings for sole-proprietors and partnerships are due by April 15 of the following year.
- Several businesses have independent contractors, i.e. real estate brokers, beauty salons and mortgage brokers. Please advise all such associates of their personal self-employment tax responsibility; their self-employment net earnings are subject to this tax.
- Late payments are subject to a 10% penalty.
- A second penalty of 15% is assessed when the payment is more than 30 days late.
- Interest of 1.5% per month will be levied.
- If you are filing for a federal extension you must also contact the City transit department; the tax is still due.
If you have any questions or would like schedules and route maps, please contact SAM/STAR dispatch at 503-668-3466 or email@example.com.