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House Bill 3991 was passed by the Oregon Legislative Assembly during the 2025 special session. Once signed into law, the act will take effect on the 91st day after the special legislative session adjourned sine die on October 1, 2025.


The expected impact of this would be that the Oregon motor vehicle fuel tax rate and use fuel tax rates will increase to $0.46 per gallon on December 31, 2025. The Oregon Fuels Tax Group will publish steps for reporting activity from December 31, 2025.


It is expected that licensees which have activity in December 2025 will be able to differentiate activity on December 31, 2025, from the rest of the month.


The following changes would take effect on December 31, 2025:

  • The Oregon motor vehicle fuel tax rate increases to $0.46 per gallon.
  • The Oregon use fuel tax rate increases to $0.46 per gallon.
  • Flat-fee special permit rates for natural gas and liquefied petroleum gas (propane) vehicles are updated as follows:

Vehicle Weight
Fee per Vehicle
10,000 pounds and less
$230.00
10,001-26,000 pounds
$1,150.00
26,001 pounds or more (not subject to weight-mile tax)
$1,533.34

Fuels Tax HB 3991 FAQ

​The Oregon motor vehicle fuel tax and use fuel tax are expected to increase to $0.46 per gallon on December 31, 2025.​

​House Bill 3991 states that it “takes effect on the 91st day after the date on which the 2025 special session of the Eighty-third Legislative Assembly adjourns sine die”. The 83rd Oregon Legislative Assembly adjourned on October 1, 2025.​

​The effective tax rate on Oregon motor vehicle fuel and use fuels is expected to become $0.46 per gallon on December 31, 2025. The fuel taxes on jet fuel and aviation gasoline will remain $0.03 and $0.11 per gallon, respectively.​

No, the reports for which this may make a difference are:
• Oregon Motor Vehicle Fuel and Aircraft Fuel Dealer Tax Report
• Use Fuel Seller Tax Report
• Use Fuel User Tax Report
• Use Fuel Bulk Distributor Report

​It is expected that licensees be able to distinguish activity on December 31, 2025, from the rest of the reporting period. Instructions for reporting the one day of activity will be made available as soon as possible, but should not require significant changes to reporting, so long as licensees are able to identify the gallons from December 31, 2025.​