Extracted source text, not Atlas analysis. Native PDF text, pypdf; NFKC normalization. Charts and image-only text may be absent; verify against the linked original. Extraction does not imply page-by-page substantive review. PDF page numbers count from the first page of the file and may differ from printed page numbers.
(B) Not a resident of this state, for services performed in this state.
(b) The periodic payments under ORS 316.189.
(3) Every employer at the time of the payment of wages shall deduct and withhold from
the total amount of the wages paid for services described under subsection (2) of this section
an amount equal to the total amount of wages, without exemption or deduction, multiplied
by the rate of tax imposed under subsection (2) of this section.
(4) Every payer at the time of making a periodic payment under ORS 316.189 shall deduct
and withhold from the payment an amount equal to the total amount of the payment, with-
out exemption or deduction, multiplied by the rate of tax imposed under subsection (2) of this
section.
(5) An employer or payer shall report and pay the tax imposed under this section to the
Department of Revenue at the time and in the manner determined by the department by
rule.
(6) For purposes of the tax imposed under this section, an employer or payer is consid-
ered a taxpayer.
(7) If a lender, surety or other person who supplies funds to or for the account of an
employer for the purpose of paying wages of the employees of such employer has actual no-
tice or knowledge that such employer does not intend to or will not be able to make timely
payment or deposit of the tax required to be deducted and withheld, such lender, surety or
other person shall be liable to the State of Oregon in a sum equal to the taxes, together with
interest, that are not timely paid over to the Department of Revenue. Such liability shall be
limited to the principal amount supplied by the lender, surety or other person, and any
amounts so paid to the department shall be credited against the liability of the employer.
(8)(a) An employer or payer shall submit an annual return pursuant to ORS 316.202 to
the Department of Revenue. The amounts deducted from the wages during any calendar year
in accordance with this section shall be considered to be in payment of the tax imposed un-
der subsection (2) of this section.
(b) The return submitted by the employer shall be accepted by the Department of Re-
venue as evidence in favor of the employee of the amounts so deducted from the employee’s
wages.
(9) Nothing in this section prohibits the Department of Revenue from including the tax
imposed under this section in the combined quarterly tax report required under ORS 316.168.
(10) An employer that fails to deduct and withhold the tax required under this section:
(a) Is deemed responsible for the payment of the tax obligation in an amount equal to the
amount required to be withheld from the employee’s wages and remitted to the Department
of Revenue; and
(b) Is subject to a penalty of $250 per employee, up to a maximum penalty of $25,000, if
the employer knowingly fails to deduct and withhold the tax.
(11) Residents subject to the tax imposed under this section on wages earned outside this
state from an employer not doing business within this state shall report and pay the tax at
the time and in the manner determined by the Department of Revenue by rule.
SECTION 122b.
ORS 316.164 is amended to read:
316.164. (1) Except as provided in subsection (3) of this section, if the Department of Revenue
makes the findings required under subsection (2) of this section, the department may require any
employer subject to ORS 316.162 to 316.221, except the state or its political subdivisions, to post a
surety bond, or irrevocable letter of credit issued by an insured institution, as defined in ORS
706.008, with the department, to secure future payment of amounts required to be withheld and paid
over to the department under ORS 316.162 to 316.221 or section 122a of this 2017 Act . The bond
or letter of credit shall be in an amount equal to the amounts required to be withheld upon the
wages paid or estimated to be paid by the employer for a period of four calendar quarters. The bond
or letter of credit shall be in a form acceptable to the department. Posting of the bond or letter of
credit shall not relieve the employer from withholding and paying over amounts based on wages paid
Enrolled House Bill 2017 (HB 2017-A) Page 109
Cite this record
Oregon Legislative Assembly. HB 2017 (2017), enrolled text, PDF p. 109. Retrieved 2026-09-04. https://olis.oregonlegislature.gov/liz/2017R1/Downloads/MeasureDocument/HB2017/Enrolled#page=109. Preserved SHA-256: 5ab76901b63ba88f2742eab37f5e9ddd922a3ffd53e76165eec6dd08f4f9282a. Atlas edition: institutional-studies-2026-09-27-stif-v2.