|1. What types of fuel are considered use fuel? |
Common examples include 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(7))
|2. What is biodiesel? |
Biodiesel is defined as mono-alkyl esters of long chain fatty acids derived from vegetable oils
or animal fats which conform to ASTM D6751 specifications for use in diesel engines.
Biodiesel refers to the pure fuel before blending with petroleum diesel fuel. Biodiesel blends
are denoted as, "BXX" with "XX" representing the percentage of biodiesel contained in the
blend (i.e., B20 is 20% biodiesel, 80% petroleum diesel).
|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(7). 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 a Use Fuel User ? |
Persons using fuel other than gasoline to propel any motor vehicle, except those exempted by law (See question #5 below) are required to first obtain an Oregon use fuel user license and a vehicle emblem (cab card) for each vehicle operated.(ORS 319.520(15)) see also OAR 735-176-0000(15)
|5. Who is exempt from Use Fuel User licensing ? |
If the use fuel tax is paid to the seller at the time of sale, a user's license is not required for a person who uses fuel in a motor vehicle with a combined weight of 26,000 pounds or less. (ORS 319.550) Please see the "Notice to Users" for additional information regarding special circumstances.
|6. What if I have farm plated vehicles over 26,000 lbs? |
If you have F-plated vehicles over 26,000 pounds, you are required to be licensed with the Fuels Tax Group, even if you pay the use fuel tax to your supplier.
|7. How do I apply for a use fuel user license and emblem(s)? Is there any charge ? |
For your convenience we have provided a multiple page "fillable" Application for Use Fuel User License and an Application for Use Fuel User Emblems. Once complete print the application form(s) and send to the Fuels Tax Group.
Or contact ODOT Fuels Tax Group MS21, 355 Capitol St NE , Salem, OR 97301-3871 , or call us at (503) 378-8150 or use the email message link below. There is no charge for the license or emblems. (ORS 319.560)
|8. What types of records does a user need to keep ? |
Use Fuel User Requirements: Every user of use fuel shall maintain and keep the following records for a period of three years:
- A purchase journal or other record of fuel received supported by purchase invoices (both tax-paid and tax-exempt).
- A record of the number of miles traveled in Oregon.
- If fuel is purchased in bulk, a stock summary of fuel handled during each month with detail as to inventory, purchases, withdrawals, sales and transfers.
- If fuel is stored in bulk, a physical inventory shall be taken at least at the end of each month and preserved for audit purposes.
|9. What period should my user report cover? When is my report due? How do I change my reporting period ? |
Use Fuel User reporting periods are based on a calendar month, quarter, or year, depending on the types of vehicle(s) licensed and the volume of fuel used.
If you file monthly, your report will cover the first through the last day of each month.
Quarterly reports cover January 1 to March 31, April 1 to June 30, July 1 to September 30, and October 1 to December 31.
Reports are due on the 20th of the month following the end of the reporting period.
You must contact the Fuels Tax Group to request a change in reporting period; unless you are informed a change has been approved, you should not change your method of reporting. (ORS 319.690, 319.692)
|10. I didn't have any usage this month, quarter, etc., do I still need to file ? |
Yes, as long as your license is active, you need to file all reports whether you use any fuel or not. Failure to file reports may result in an assessment of delinquent tax, penalty, and interest. (ORS 319.690)
|11. I purchase use fuel at cardlocks for my diesel vehicles that are not subject to the weight mile tax. Beginning in July 2004 my supplier started charging me the Oregon tax. Why didn't my supplier charge the tax before July 2004? Do I owe back taxes for the period prior to July 2004? |
Prior to July 2004 your cardlock supplier was not required to collect the use fuel tax from you. As a result of new laws effective in 2004, your supplier was required to collect the tax from you beginning in July 2004 unless the supplier has a Certification of Oregon Use Fuel tax exempt status form from you. You could be liable for tax on your use fuel purchases prior to July 2004 if your cardlock supplier did not charge you the tax. We recommend that you contact us for help with your specific situation, and to determine whether any tax is due. Voluntarily coming forward may enable the Fuels Tax Group to waive any penalties that would otherwise apply.
|12. My truck has ODOT plates and all miles traveled are subject to weight-mile taxes. Do I need to pay the use fuel tax ? |
No; as long as all miles are reported to Motor Carrier and the weight-mile tax is paid. See question #13 below if some of the miles driven are not subject to weight-mile taxes.
|13. Only some of my miles are subject to weight-mile taxes through Motor Carrier; how do I report the miles not subject to weight mile taxes (exempt miles) for use fuel taxes ? |
You are required to keep "an accurate record of Oregon miles traveled" for each vehicle, each report period. Schedule A of the report form has an area to report miles subject to Motor Carrier taxes.
|14. Are IFTA (International Fuels Tax Agreement) vehicles subject to the state tax on diesel fuel? |
Being registered with IFTA does not exempt your vehicle from the use fuel taxes;
If the vehicle is exempt from the Motor Carrier weight-mile fees (i.e. Farm-plated vehicles) it is, therefore, subject to the use fuel (diesel) tax.
If the vehicle pays for all of its Oregon miles by filing and remitting Oregon´s Motor Carrier weight-mile fees it is not subject to the use fuel (diesel) tax.
Generally, vehicles are subject to either the weight mile fee OR the use fuel (diesel) tax for the use of Oregon´s public highways.
For further information please contact the IFTA group at (503) 378-5948 and/or the Fuels Tax Group at (503) 378-8150.
|15. 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.