Motor carrier fuel/Highway use/Mileage tax - Oregon

Fuel credits

A carrier can claim a credit for the Oregon fuel tax paid on fuel purchased for a vehicle that is subject to weight-distance tax. The deduction must be for the reporting period in which the carrier used the fuel.

A carrier must attach copies of fuel invoices to the weight-distance tax report to receive the fuel credit. Fuel card statements reflecting purchases from retail stations must clearly separate and identify retail and cardlock purchases. Purchases from retail stations require an invoice or receipt from the original seller to be accepted. The fuel invoice must contain:

• Date and location of purchase;
• From whom purchased;
• Kind of fuel and number of gallons purchased;
• Oregon weight receipt and tax identifier number, temporary pass number, or special transportation permit of the vehicle if fuel is delivered directly into such vehicle; and
• Amount of fuel tax paid.

Carriers who purchase fuel in bulk must attach to the highway use tax report for the period in which the fuel was dispensed into a motor vehicle copies of invoices from fuel suppliers indicating Oregon state fuel tax paid and fueling records showing fuel dispensed for each motor vehicle.

Diesel vehicles usually do not pay Oregon state fuel tax at the pump. When a carrier is charged Oregon fuel tax, a separate entry showing state tax will appear on the receipt.

Recordkeeping

Carriers subject to the weight-distance tax must keep records for at least three years at the carrier's main office or place of business.

All carriers must maintain records containing the following information for each vehicle:

• Origin and destination points;
• Oregon entry and exit points;
• Actual Oregon miles for each trip;
• Pickup and delivery points in Oregon for each trip;
• Routes for travel for each trip;
• Dates of each trip;
• Daily beginning and ending odometer or other mileage recording device readings for each vehicle;
• Load tickets and/or bills of lading for each shipment transported;
• Identification of any exempt miles claimed, which includes beginning and ending odometer or other mileage recording device readings for the exempt portion of each trip (if repeated trips are made to and from the same locations, a one-time recording of odometer or other mileage recording device readings for the exempt portion of those trips may be applied to the total number of trips);
• Carriers operating motor vehicles that are issued or required to obtain an annual variance permit with a combined weight of more than 80,000 pounds must also provide for each reporting period the number of axles in the vehicle configuration and a record of changes of operation (a change of operation occurs when the vehicle configuration remains the same but the actual weight of the vehicle and load changes from over 80,000 pounds to 80,000 pounds or less; empty movements are not changes in operation); and
• Carriers operating motor vehicles in multiple configurations must provide the number of miles operated in each motor vehicle configuration for each trip.

All registrants that pay registration fees via registration trip permits must retain a copy of each registration trip permit.

Records generated from on-board recording devices, vehicle tracking systems, or other electronic data recording systems may be used in lieu of, or in addition to, the records required provided that the electronic records meet all the requirements and are provided in printed format, upon request.

Weight-mile tax refunds

A carrier with a valid weight receipt credential will primarily purchase diesel fuel tax-free at the pump. However, should a carrier have to make purchases where the tax is paid, the carrier is allowed a refund when filing the weight-mile tax report.

The carrier must submit valid invoices or receipts with the following information:

• Fuel supplier’s name;
• Date and location of purchase;
• Type of fuel and number of gallons purchased;
• Oregon commercial or Oregon apportioned license plate number, Oregon Weight-Receipt and Tax Identifier number, or Temporary Pass Number; and
• The amount of fuel tax paid.

Invoices or receipts failing to list the fuel tax paid separately from the total cost, and that do not identify the vehicle as one subject to the weight-mile tax, are not accepted.

Power take-off and auxiliary engine fuel tax refunds

When a person purchases and uses motor vehicle fuel in a vehicle equipped with a power take-off unit, a refund may be claimed for fuel used to operate the power take-off unit provided the vehicle is equipped with a metering device approved by the Department of Transportation and designed to operate only while the vehicle is stationary with the parking brake engaged. The quantity of fuel measured by the metering device is presumed to be the quantity of fuel consumed by the operation of the power take-off unit. For fuel used in operating a power take-off unit on a cement mixer truck or on a garbage truck, claimants are allowed a refund of 25 percent of the tax paid on all fuel used in such a truck (not applicable to garbage trucks with power take-off that operates only a dump box, hoist, or other type of lift). Claims must be accompanied by valid purchase invoices to cover the total gallons of motor vehicle fuel purchased. Claimants must also maintain records to show the total gallons of motor vehicle fuel used in each vehicle and the total miles operated by each vehicle. Service station purchase invoices should identify each vehicle by showing the vehicle license plate number. If fuel is withdrawn from bulk storage, a detailed record must be kept of all withdrawals, together with beginning and ending inventories, so that a complete accounting may be made of all fuel handled.

Fuel used in an auxiliary engine mounted on a licensed motor vehicle (ready mix concrete, refrigeration, or air conditioning units, etc.), is considered refundable use if motor vehicle fuel for the auxiliary engine is supplied from a fuel tank, other than the fuel tank that supplies the engine propelling the vehicle. Estimates of refundable use do not qualify for a refund. When separate tanks are used, a record of the gallons of fuel delivered into each tank must be kept and purchase invoices covering both tanks must accompany the claim. Motor vehicle fuel used in the operation of an auxiliary engine, mounted on a licensed motor vehicle, supplied from the fuel tank that propels the vehicle, is only considered refundable use if a metering device approved by the Department is used. The metering device must separately measure gallons of fuel used only by the auxiliary engine.

Refund claims must be made on the current fuels tax refund claim forms provided by the Department.

Truck engine tax credit

The truck engine tax credit expired January 1, 2012.

Clean diesel retrofit tax credits

The retrofit tax credit expired January 1, 2012.