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 vehicles in Oregon. The vehicle use tax applies to Oregon residents and businesses that purchase vehicles outside of Oregon . Starting January 1, 2018, one-half of 1 percent will be due on the retail price of any taxable vehicles.

Important information

“Retail Sales Price” means:

The total price paid (including down payment and the trade-in property value) for the vehicle as it came equipped from the manufacturer;

  • Plus:
    • Any separately stated dealer preparation (for example—clear-coating, rustproofing, etc.), and
    • Transportation charges, and
    • Charges for accessories, parts, or other aftermarket products;
  • Less:
    • Any separately stated discounts or rebates which reduce the price of the vehicle at the time of sale.​
 
“Retail Sales Price” does N​​OT include the retail value of:
  • Any charges for warranties or optional maintenance contracts; or
  • Document processing fees; or
  • Registration and licensing fees; or
  • ADA modifications (for sales on or after June 2, 2018); or
  • Customized industrial modifications made to chassis of medium-duty trucks with GVWR of 10,000 to 26,000 pounds (for sales on or after June 2, 2018).

Supreme Court appeal and taxes due

An appeal was filed with the Oregon Supreme Court challenging the distribution of the vehicle privilege tax, but the tax is still in effect pending that decision. The filing of this appeal doesn’t change your obligation to report and remit the privilege or use tax quarterly.

About the new taxes

Leased vehicles

The privilege and use taxes apply to sales of vehicles to lessors. The tax is calculated based on the retail sales price paid by the lessor to the dealer.

Trailers and recreational vehicles

Trailers operating with a load weight of 1,800 pounds and sold with a manufacturer’s certificate of origin (MCO) required to be registered with a DMV are subject to the privilege and use taxes. These taxes also apply to sales of recreational vehicles, including travel trailers and fifth-wheels. The full list of vehicles whose sales are subject to the privilege and use taxes is available below.

Vehicles without odometers

A vehicle that doesn’t have an odometer, but does have a MCO is a taxable motor vehicle.

What's subject to the vehicle privilege or use tax?

Taxable sales are those of vehicles with 7,500 miles or less and a gross vehicle weight rating (GVWR) of  26,000 lbs. or less, and haven't been registered 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 801.258), if sold between January 1, 2018 and June 1, 2018. After June 1, 2018, sales will be subject to the bicycle excise tax.
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)
Vehicle dealers in Oregon are responsible for paying the vehicle privilege tax on the sale price of each 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.

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

  • Vehicle sales to purchasers who aren't residents of Oregon.
  • Sales of vehicles to a business where the primary storage, use, or other consumption of the vehicle will be outside of Oregon.
  • Sales of vehicles at an event of fewer than seven consecutive days for which the public is charged admission and where vehicles are sold at auction.
  • Vehicle sales for which the seller takes a resale certificate from a purchaser who is ordinarily engaged in the business of selling vehicles.

Registration instructions

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. Once you're registered and you have a Revenue Online account, you'll be able to view and manage your vehicle privilege account electronically.

To register, go to Revenue Online and click on "Vehicle and bicycle taxes" in the Quick Links. You'll need the following information to complete the registration process:
  • For the tax entity you're registering:
    • Name.
    • Federal identifier [federal employer identification number (FEIN), Social Security number (SSN), or individual taxpayer identification number (ITIN)].
    • Mailing address.
  • For all company owners and officers:
    • Name.
    • Federal identifier (FEIN, SSN, or ITIN).
    • Mailing address.
  • The date you started making taxable sales, if it was after January 1, 2018 (the date the tax went into effect).
  • A valid email address or your Revenue Online account login, if you already have one.
If you need help with the registration process or have any questions, please contact us at spa.help@oregon.gov or (503) 945-8120.

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.
 

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.

Sales made by dealers during events that last fewer than seven consecutive days and for which the public is charged admission and vehicles are sold at auction are not taxable. Also, vehicle sales for which the seller takes a resale certificate from a purchaser who is ordinarily engaged in the business of selling vehicles.

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:
  • Complete our online registration process through Revenue Online, our secure self-service site. See the "Registration instructions" section below for more information on registering with us. You'll need this account to request documentation on behalf of your customer showing the use tax has been paid. The DMV will need this documentation in order to title or register the vehicle in Oregon.
  • Submit a certificate of use tax paid to the DMV for each taxable vehicle you sell. The DMV can't title or register a taxable vehicle in Oregon without a valid certificate of use tax paid.  
You can request the certificate through Revenue Online. When requesting a certificate, you'll need to provide the:
    • Date of sale.
    • Vehicle identification number (VIN).
    • Make and model.
    • State of purchase.
    • Retail sales price.
    • Amount of all taxes collected, including taxes imposed by other states or local governments.
  • 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.
  • Report and remit taxes collected to the Oregon Department of Revenue each quarter.

Registration instructions

To register, go to Revenue Online and click on "Register for transportation taxes" in the Quick Links. You'll need the following information to complete the registration process:

  • For the tax entity you're registering:
    • Name.
    • Federal identifier [federal employer identification number (FEIN), Social Security number (SSN), or individual taxpayer identification number (ITIN)].
    • Mailing address.
  • For all company owners and officers:
    • Name.
    • Federal identifier (FEIN, SSN, or ITIN).
    • Mailing address.
  • The date you started selling taxable vehicles, if it was after January 1, 2018 (when the tax went into effect).
  • A valid email address or your Revenue Online account login, if you already have one.
If you need help with the registration process or have any questions, please contact us at spa.help@oregon.gov or (503) 945-8120.

Returns and payments: Dealers

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.

What is the purchaser responsible for?

If you buy a taxable motor 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 Oregon Department of Revenue. The DMV can't register your vehicle without documentation from us showing that the use tax was paid. You can use Revenue Online to report and pay the tax and request the document you'll need to give to the DMV. Returns and payments are due by the 20th day of the month following the month of purchase. Returns and payments for purchases after June 1, 2018 will be due 30 days following the date of purchase.

If you pay the tax at the time of sale, the dealer is required to obtain a certificate of use tax paid. The DMV requires this certificate to register or title the vehicle in Oregon. Most dealers will submit the certificate to the DMV on your behalf. If the dealer doesn't submit the certificate for you, you'll need to bring the certificate to the DMV when you go to title and register your vehicle in Oregon.
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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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