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Selling and Using Biodiesel in Oregon
01/12/2006
For Oregon Use Fuels Tax purposes, biodiesel is treated the same as petroleum based diesel.  Like petroleum based diesel, biodiesel is a use fuel and is taxed when the fuel is delivered into the fuel tank of a motor vehicle. Persons who sell biodiesel for use in a motor vehicle must be licensed as a Use Fuel Seller with the Oregon Department of Transportation Fuels Tax Group.  If the biodiesel is sold tax exempt, the same documentation requirements apply to biodiesel as apply to petroleum based diesel.  See Use Fuel Seller Frequently Asked Questions located under the Use Fuel section of this Website. Link to Seller FAQ’s
 
Persons who purchase biodiesel in bulk or manufacture their own biodiesel are responsible for paying the tax when the fuel is used in a motor vehicle on public roads.   The user must become licensed with the Fuels Tax Group as a Use Fuel User to report and remit tax on a periodic basis (monthly, quarterly or annually depending on volume used).  See Use Fuel User Frequently Asked Questions located under the Use Fuel section of this Website.  Link to User FAQ’s
 
The Fuels Tax Group often receives inquiries about fuels tax credits for biodiesel.  There is no State fuels tax credit for biodiesel at this time.  The tax rate is $.24 per gallon, just as it is for petroleum based diesel. The tax rate is the same for “pure” biodiesel, or blends of biodiesel and petroleum based diesel.
 
If you have any questions, please contact the Fuels Tax Group.