|1. What types of fuel are considered use fuel? |
Common examples include low sulfur diesel, ultra low sulfur diesel, compressed natural gas (CNG), and propane. Use fuel also includes premium diesel, biodiesel, and any fuel other than gasoline used to propel a motor vehicle on public roads. (ORS 319.520(4))
|2. What is biodiesel? |
“Biodiesel” means any fuel or mixture of fuel that is:
a. derived in whole or in part from agricultural products or animal fats or the wastes of such products; and
b. suitable for use as fuel in diesel engines
|3. Is biodiesel taxable? |
When biodiesel is used to propel motor vehicles, the fuel becomes taxable as an Oregon Use Fuel under ORS 319.520(4). The rate is $0.30 per gallon, whether the fuel is pure biodiesel (B100) or used in combination with petroleum based diesel products, regardless of the ratio.
|4. What is required by ODOT Fuels Tax Group to sell propane? |
If propane is sold for use in a motor vehicle, a Use Fuel Seller License is required. When reporting you must convert the taxable propane gallons to use fuel, by dividing the gallons sold by 1.3, then multiplying by the 30-cent tax rate. Sales of propane into containers are not subject to the Oregon tax.
|5. What is a "seller"? |
A seller is a person who sells use fuel to a user. To "sell use fuel for use in a motor vehicle" means to deliver or place use fuel for a price into a receptacle on a motor vehicle, from which receptacle the fuel is supplied to propel the motor vehicle. Sellers can be either retail or non-retail.
- Non-Retail Sales: If fuel is dispensed at a non-retail facility as defined in ORS 480.310, then the Seller is the person that owns the user’s accounts and bills the user for fuel purchased at a non-retail facility. For the location to qualify as "non-retail", it must be licensed with the Oregon State Fire Marshall as a cardlock facility.
- Retail Sales: All other sales not dispensed at a non-retail facility.
See ORS 319.520(9) and (10), and 480.310.
|6. I operate a retail station where use fuel is sold. I accept cardlock cards as a method of payment. Am I considered a cardlock? May I sell to these customers ex-tax if they pay with the cardlock card? |
Accepting cardlock cards as a method of payment does not make you a nonretail (cardlock) seller. You are a retail seller, and are responsible to collect the Oregon use fuel tax on all sales of use fuel into motor vehicles unless you prepare a properly documented ex-tax invoice showing a valid reason for the ex-tax sale. You may not sell ex-tax just because the payment is via cardlock card. The method of payment (cash, credit card, cardlock card, etc.) is immaterial in determining whether or not the sale is taxable. For sales qualifying as ex-tax, the seller must document the ex-tax sale (See Question 11 below for more information on documenting ex-tax sales).
|7. I am a nonretail seller. Some of my customers fuel at retail sites in Oregon that have cardreaders that accept the cardlock network cards. When I run my cardlock customer report to file my use fuel seller taxes, the report includes these retail site sales along with my nonretail cardlock customer billings. Am I responsible for the tax on sales made to my cardlock customers at retail sites using my cardlock card? |
No. Any tax paid by the non-retail seller to ODOT on sales at a retail site by the non-retail seller's own customers is an erroneously paid tax by the seller. The seller should exclude or deduct their customers' retail sales paid by cardlock card from the non-retail customer billings in computing the tax payable to ODOT. Only deductions for the non-retail seller's own customers retail sales paid by the cardlock card may be taken, and only if those retail sales were initially included in the nonretail seller's customer billings.
|8. I have a card operated facility, and sell diesel only. My site is not licensed with the State Fire Marshall. Am I a retail or non-retail seller? |
To qualify as a non-retail seller, you must be licensed with the State Fire Marshall. If your site is a diesel-only cardlock, you are a retail operation.
|9. I am a non retail seller. In July of 2004, I started collecting tax from customers to whom I previously sold ex-tax. Am I liable for the tax prior to July 2004? |
No. However, your customers may be. If your customers have questions regarding their tax liability, have them contact the Fuels Tax Group.
|10. How do I know if a vehicle is qualified to receive tax exempt fuel at a retail station? |
A vehicle may receive use fuel exempt of the Oregon tax if the vehicle:
- Has an ODOT weight receipt, temporary receipt, or temporary pass
- Has US Government plates, Oregon state government ‘E’ plates, or
- Has a valid Oregon use fuel User emblem
All tax-exempt sales of use fuel must be documented with a tax-exempt invoice. See Question #11 below for requirements.
|11. What information is required on a tax-exempt invoice? |
A use fuel invoice must show at least the following (ORS 319.671):
- The seller´s name and address;
- The complete date of sale (month, day, year);
- The amount of the sale in gallons;
- The amount of the tax collected, if any;
- The name and address of the user; AND
- Vehicle, equipment, or container information as follows:
- The ODOT weight receipt, temporary receipt, or temporary pass, if the vehicle is subject to weight-mile taxes; or
- The emblem number, if the vehicle bears a user´s emblem; or
- The US Government license plate number or Oregon state ‘E’ plate number if the vehicle bears no valid user´s emblem or permit issued by the department; or
- If unlicensed, a description of the container or equipment (can, tractor, backhoe, etc).
|12. What information is required to sell tax-exempt fuel at a licensed (per ORS 480.310) non-retail (cardlock) facility? |
To sell use fuel exempt of the Oregon tax at a non-retail facility, you must obtain a completed “Certification of Oregon ‘Use Fuel’ Tax-Exempt Status” from the customer requesting an ex-tax card. The customer will indicate the reason they are exempt by checking line 1, 2, 3, 4, and/or 5 as it applies to their situation, and signing the certificate. You retain the certificate in your office. By signing the certificate, the customer accepts liability for any cards used improperly. Without the certificate, you (the card issuer/account owner) are responsible for the tax on all of the customer’s Oregon use fuel purchases.
|13. I have a truck stop; most of my fuel sales are tax-exempt. Can I just report how many gallons were sold with the tax included? |
No. Sellers must report either using schedule 1 (stock summary) or schedule 2 (pump meter readings). Both methods require that you report all gallons sold.
|14. How often should I take tank readings and meter readings? |
Both tank readings (stick or electronic) and pump meter readings (manual or electronic) are to be taken consistently on the last calendar day of each month, as a minimum. (ORS 319.697, OAR 735-176-0010)
|15. What period does my seller report cover? How do I request a change in reporting period? |
Sellers are set up for monthly reporting when initially licensed. The monthly report covers a calendar month (i.e. April 1 – 30). Sellers may request a change in report period to report quarterly or annually if their volume qualifies. To do this you must first contact the Fuels Tax Group to obtain authorization. Unless you receive authorization from the Fuels Tax Group, you should not change your method of reporting. (ORS 319.675)
|16. When is the use fuel seller report due? |
Reports are due on the 20th of the month following the end of the report period. For example, the April report would be due May 20th. If the 20th falls on a weekend or state holiday, your report must be postmarked the next business day. (ORS 319.675)
|17. How do I correct a report from a prior period if I made a mistake? |
NOTE: If your adjustment is due to the improper taxing of a customer, additional information is required. Please contact the Fuels Tax Group for information. See also "Making Corrections To And Requesting Credits on The Use Fuel Seller Tax Report …" in the ‘Use Fuel Seller’ section of the website.
You should file an amended report for each reporting period involved. Clearly mark the top of the report “AMENDED” indicating this is a revised report. Complete the report with the corrected figures and attach copies of all schedules that have been revised. If the change results in tax due, remit the additional tax, and applicable penalty and interest; if the change results in a credit, you may claim the credit on line 7 of your next seller report. All reports are subject to audit.
|18. I received a notice that I owe additional tax, penalty and interest for a prior report. How do I show that part of my payment is for a period other than my current report? |
When including payment for a period other than the current period, write the additional amount being paid on line 7 of your use fuel seller report and include the amount in the total paid on line 8. Also indicate in the space provided on line 7 the reason for the additional amount paid (or credit claimed). If this is a result of a notice sent to you by the Fuels Tax Group, enclose a copy of that notice. If due to an invoice, write the invoice number (FT-####) on line 7.
|19. Do you have a question about use fuel that was not included? |
Please email us at ODOTFuelsTax@odot.state.or.us. You may want to include a contact name and daytime phone number in the event we need additional information.