HERMISTON, Ore. - Local businesses are feeling the effects of the bike tax that was imposed across the state of Oregon.
The first and only bike tax in the country went into effect in Oregon on January 1st of this year. The tax adds an extra $15 to the sale of any bike with wheels bigger than 26 inches that costs more than $200.
Scott's Cycling and Sports in Hermiston said they felt the effects of the tax almost immediately. They said it's hard for them to compete with the internet and they fear the long-term effects this law could have on their brick and mortar.
Steven Cimmiyotti is the store's owner and said their customers are not used to sales tax in the state so are often surprised when they hear their total when checking out.
“We’re gonna probably out tags on each bike that say ‘$15 bike tax’ so people know up front," Cimmiyotti said. "It's a big surprise and sometimes it can change sales.”
The tax money goes towards improving bike and pedestrian paths, which Cimmiyotti said is mainly a Portland benefit that people won't see in Eastern Oregon.
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