This guide does not replace nor change Oregon Revised Statute 319 or any administrative rule. Answers are condensed and simplified for ease.
For complete laws and requirements:
Introduction to Fuel Tax in Oregon
The money used to preserve, improve and operate Oregon’s transportation system comes from state, federal, county and city sources. Oregon funds its road system through road user fees based on these concepts:
- Those who use the roads pay for them.
- Road users pay the amount of the road costs for what they drove/used.
- Road user fees are used for building and improving roads.
Fuel Tax is applied to all fuels used to propel motor vehicles on Oregon’s roads and highways. The Fuel Tax program is governed by Oregon Revised Statute 319. It divides fuel into two categories:
Motor Vehicle Fuel and Aircraft Fuel Taxes
- A Motor Vehicle Fuel Dealer is defined as any person who imports, exports, produces, refines, manufactures, blends or compounds motor vehicle fuel or aircraft fuel.
- This includes gasoline, gasoline blends and aviation fuel:
- Motor vehicle fuel is taxed at 34 cents per gallon.
- Aviation gas is taxed at 11 cents per gallon.
- Jet fuel is taxed at 3 cents per gallon.
Use Fuel Taxes
- This includes diesel, biodiesel, propane, compressed natural gas, etc.
- Use fuel is taxed at 34 cents per gallon.
- Conversion rates apply to propane and CNG.
Use fuel licensing is broken into three categories:
Use Fuel Seller
Any person or business that sells use fuel to a user when the fuel bought is used to propel the motor vehicle on Oregon public roads. OR if the fuel is sold at a non-retail facility and the owner bills the user for purchases.
Use Fuel User
Any person who receives use fuel into a canister on a motor vehicle used to propel vehicles on the highways of Oregon.
Any person who sells bulk use fuel to a Use Fuel User, collects the tax and is not a Use Fuel Seller as defined by ORS 319.520 (9).