These guides do 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.
Oregon's fuel taxes are 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
- An Oregon Motor Vehicle Fuel and Aircraft 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 38 cents per gallon through 2023.
- Motor vehicle fuel is taxed at 40 cents per gallon, effective January 1, 2024.
- Aviation gas is taxed at 11 cents per gallon.
- Jet fuel is taxed at 3 cents per gallon.
Use Fuel Taxes
- This includes petroleum diesel, biodiesel, renewable diesel, liquefied petroleum gas (propane), liquefied natural gas, compressed natural gas, hydrogen, etc.
- Use fuel is taxed at 38 cents per gallon through 2023.
- Use fuel is taxed at 40 cents per gallon, effective January 1, 2024.
- Conversion rates apply to liquefied petroleum gas (propane) and natural gas.
Use fuel licensing is broken into three categories:
Use Fuel Seller
Any person or business that sells use fuel to a Use Fuel User, when the fuel is used to propel the motor vehicle on Oregon public roads, or any person or business that issues cards to be used in a non-retail facility.
Use Fuel User
Any person who receives use fuel into the receptable on a motor vehicle used to propel vehicles on the highways of Oregon.
Bulk Distributor
Any person who sells bulk use fuel to a Use Fuel User, and is not a Motor Vehicle Fuel and Aircraft Fuel Dealer as defined by ORS 319.010(6) or a Use Fuel Seller as defined by ORS 319.520(14).