Oregon – Road Use Tax Program Enacted

SALT Report 2884 – Recently enacted legislation in Oregon creates a voluntary program in which a vehicle owner can choose to pay a road use tax rather than the state’s motor fuel taxes. The new tax is a usage charge and will be imposed at a rate of $0.015 per mile.

Requirements

To qualify for the program, the taxpayer must own or lease the vehicle and the vehicle must have a gross vehicle weight of 10,000 lbs. or less. Taxpayers who enroll in the use tax program will be issued an emblem that must be affixed to the car to notify retailers that the vehicle is exempt. Enrollment in the use tax program will be limited to 5,000 vehicles.  The Department may impose additional limits on vehicles with certain miles per gallon ratings.

Vehicle Tracking Methods

Taxpayers who voluntarily enroll in the program will be required to select a third-party provider certified by the state to track the vehicles mileage.  The provider will supply in-vehicle data collection methods and offer invoicing and payment services to the taxpayer.  The Bill also provides that taxpayers will have the opportunity to select from a variety of per mile tracking methods, including one that is not based on the vehicle’s location.

Lastly, the program includes an assumption that any miles driven are on Oregon public highways; therefore taxpayers will be entitled to a refund for vehicle use on privately owned property. All refund claims must be filed within 15 months of the original payment date.  The Department may use issue the refund in the form of a credit against future use tax charges.

The program also includes penalties for disabling or tampering with a tracking device.

The provisions in Senate Bill 810 are effective October 7, 2013.

For Further Information

Oregon State Legislature – Senate Bill 810, Laws 2013