Oregon set to begin collecting higher vehicle taxes and fees Jan. 1

By Keith Goble, Land Line state legislative editor | 12/22/2017

The first of the year marks the beginning of new and higher taxes and fees in Oregon. The changes result from a transportation funding bill approved by state lawmakers.

A 4-cent increase in the state’s 30-cent fuel tax rate takes effect Jan. 1. Additionally, 2-cent increases will follow every two years through 2024. At that time, the gas tax rate will reach 40 cents.

For professional drivers, proportionate increases will be applied to the weight-mile tax, trip permits, and variance permits.

The New Year will see the existing 16.38-cent per mile tax on large trucks increase to 20.48 cents. The tax will eventually be raised to 25.12 cents by Jan. 2024.

Fuel-efficient vehicles also will have higher fees to help compensate for generating less fuel-tax revenue.

The tax increases are the result of a 10-year, $5.3 billion transportation bill signed into law earlier this year by Gov. Kate Brown. The funding deal, HB2017, benefits major highway expansion and improvements to mass transit via new taxes and fees, including tolls.

Half of the fuel tax revenue will be allotted for state transportation work, 30 percent will be routed to counties and the rest will be sent to cities.

A portion of the county revenue will be sent to Malheur County for a $26 million intermodal freight facility to transfer goods moved by truck onto rail.

Other tax and fee increases set to be implemented include a sales tax on new vehicle purchases, and higher vehicle title and registration fees. Specific to motor carriers, flat monthly fees will increase for carriers electing flat monthly reporting for hauling certain commodities.

Road-use assessment fees also will increase for non-divisible loads in excess of 98,000 pounds. Minimal increases are also set for Oregon weight receipts, single trip permits, and continuous trip permits.

Registration cards
Another new law in effect Jan. 1 allows vehicle owners to black out or obscure the residence address, business address, mailing address or vehicle address shown on the registration card and on proof of compliance carried in the vehicle.



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