Businesses

The 2017 Oregon Legislature passed House Bill 2017, which included two new vehicle taxes. The vehicle privilege tax is a tax for the privilege of selling new vehicles in Oregon. The vehicle use tax applies to Oregon residents and businesses that purchase vehicles outside of Oregon. Starting January 1, 2018, 0.5 percent will be due on the retail price of any new taxable vehicles.

Revenue from the vehicle privilege tax will fund electric vehicle rebates and multimodal transportation projects. Revenue from the vehicle use tax will go to the State Highway Fund to be used for construction, reconstruction, improvement, repair, maintenance, operation, and use of public highways, roads, streets, and roadside rest areas.​​

What vehicles are subject to the vehicle privilege or use tax?

    Taxable vehicles are those with 7,500 miles or fewer, that weigh 26,000 lbs. or less, and haven't been titled in Oregon. This includes:


    ​Vehicles other than all-terrain vehicles (ORS 744.850) ​Bus trailers (ORS 801.165) ​Campers (ORS 801.180)
    ​Commercial buses (ORS 801.200). ​Commercial motor vehicles (ORS 801.208) ​Commercial vehicles (ORS 801.210)
    ​Electric-assisted bicycles (ORS 801.285) ​Fixed-load vehicles (ORS 801.285) ​Mopeds (ORS 801.345)
    ​Motor-assisted scooters (ORS 801.348) ​Motor homes (ORS 801.350) ​Motor trucks (ORS 801.355)
    ​Tank vehicles (ORS 801.522) ​Truck tractors and trailers (ORS 801.575 and 801.580) ​Worker transport buses (ORS 801.610)

    What vehicles aren't subject to the vehicle privilege or use tax?

    • Vehicles sold to purchasers who aren't residents of Oregon and the vehicle will be primarily used outside of Oregon.
    • Vehicles sold for use or storage outside of Oregon or sold to a business where the primary use will be outside of Oregon.
    • Vehicles sold at an event of fewer than seven consecutive days for which the public is charged admission and where vehicles are sold at auction.

    Who is a vehicle dealer?

    A vehicle dealer is any person or entity who:
    • Buys, sells, brokers, trades, or exchanges vehicles; or
    • Offers, displays, or advertises a vehicle for sale; or
    • Acts as any type of agent for the seller or buyer of a vehicle.

    This doesn't include those who conduct events that last fewer than seven consecutive days and for which the public is charged admission and vehicles are sold at auction.

    Vehicle dealers in Oregon are responsible for paying the vehicle privilege tax on the sale price of each new vehicle sold. Dealers may collect the amount of the tax from the purchaser in the same manner and at the same time as the collection of document processing fees.

    Make sure you register with us before your first return and payment are due. You can't file or pay without being registered for a vehicle privilege tax account. Registration instructions will be available on this page by January 2018.

    ​Returns and payments

    Returns and payments are due on or before the last day of the month following the end of each quarter. Revenue Online provides convenient tools for managing your account, including electronic return filing and payment options.

    Quarterly filing due dates
    Quarter Quarter ending date
    Due date
    1st — Jan-Feb-Mar March 31 April 30
    2nd — Apr-May-Jun June 30 July 31
    3rd — Jul-Aug-Sep September 30 October 31
    4th — Oct-Nov-Dec December 31
    January 31
    If due date is a weekend or holiday, the return is due the next business day. 
    There is a 5-percent penalty if you don't pay by the due date. A 20-percent penalty is charged if you don't file a return within 30 days of the due date. Interest is added to any unpaid tax and calculated from the time the tax becomes due.
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    What is the out-of-state vehicle dealer responsible for?

    You must collect and remit the tax if you have a physical presence in Oregon sufficient to create a substantial nexus for tax purposes. Generally, physical presence is created by employees or independent contractors who regularly work in Oregon, or ownership of real property in Oregon. If you do not know whether your business has a physical presence in Oregon, we encourage you to consult a tax professional or attorney to determine the legal obligations associated with your particular circumstances.​

    If you don’t have a physical presence in Oregon, you may still choose to collect and remit the tax on behalf of your customers. If you choose to collect and remit the tax, you must do so for all motor vehicles that you sell which are subject to the tax. 

    If you collect the tax from your customers, you must:
    • Separately state the amount of any tax that you collect on a sales receipt or other proof-of-sale document that you give to your customers.
    • Have a way of tracking the following information for every taxable vehicle that you sell. You’ll also need to track this same information for any vehicles that are returned to you by the purchaser.
      • Date of sale. 
      • Customer name. 
      • Vehicle identification number (VIN). 
      • Make and model. 
      • State of purchase. 
      • Retail sales price. 
      • Amount of any tax collected, including any taxes imposed by other states or local governments. 
    • ​Register with the Oregon Department of Revenue before submitting your first return and payment. Check back in January 2017 for instructions on how to register.

    What is the purchaser responsible for?

    If you're an Oregon resident and you buy a new vehicle from an out-of-state dealer and don't pay the Oregon use tax at the time of sale, you must report and pay the tax directly to the state of Oregon. Returns and payments are due by the 20th of the month following the month of purchase. You won't be able to title and register your vehicle until the use tax has been paid. If you pay the tax at the time of sale, the dealer is required to provide you with a receipt, invoice, or similar proof-of-sale document showing the amount of tax paid on a separate line. Be sure to keep this document. You may be required to show proof of tax payment when you go to title and register your vehicle in Oregon. 

    Returns and payments

    Returns and payments are due on or before the last day of the month following the end of each quarter. Revenue Online provides convenient tools for managing your account, including electronic return filing and payment options.

    Quarterly filing due dates
    Quarter Quarter ending date
    Due date
    1st — Jan-Feb-Mar March 31 April 30
    2nd — Apr-May-Jun June 30 July 31
    3rd — Jul-Aug-Sep September 30 October 31
    4th — Oct-Nov-Dec December 31
    January 31
    If due date is a weekend or holiday, the return is due the next business day. 
    There is a 5-percent penalty if you don't pay by the due date. A 20-percent penalty is charged if you don't file a return within 30 days of the due date. Interest is added to any unpaid tax and calculated from the time the tax becomes due.
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    File and pay

    Go to Revenue Online

    Contact us

    Phone: (503) 945-8120
    Fax: (503) 947-2255
    Email: spa.help@oregon.gov


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