Oregon Motor Vehicle and Aircraft Fuel Taxes
ORS 319.020
Monthly statement by dealer; license tax imposed; rules


(1)

Subject to subsections (2) to (4) of this section, in addition to the taxes otherwise provided for by law, every dealer engaging in the dealer’s own name, or in the name of others, in the first sale, use or distribution of motor vehicle fuel or aircraft fuel or withdrawal of motor vehicle fuel or aircraft fuel for sale, use or distribution within areas in this state within which the state lacks the power to tax the sale, use or distribution of motor vehicle fuel or aircraft fuel, shall:

(a)

Not later than the 25th day of each calendar month, render a statement to the Department of Transportation of all motor vehicle fuel or aircraft fuel sold, used, distributed or so withdrawn by the dealer in the State of Oregon as well as all such fuel sold, used or distributed in this state by a purchaser thereof upon which sale, use or distribution the dealer has assumed liability for the applicable license tax during the preceding calendar month. The dealer shall render the statement to the department in the manner provided by the department by rule.

(b)

Except as provided in ORS 319.270 (Fuel sold or distributed to dealers), pay a license tax computed on the basis of 34 cents per gallon on the first sale, use or distribution of such motor vehicle fuel or aircraft fuel so sold, used, distributed or withdrawn as shown by such statement in the manner and within the time provided in ORS 319.010 (Definitions for ORS 319.010 to 319.430) to 319.430 (Savings clause).

(2)

When aircraft fuel is sold, used or distributed by a dealer, the license tax shall be computed on the basis of 11 cents per gallon of fuel so sold, used or distributed, except that when aircraft fuel usable in aircraft operated by turbine engines (turbo-prop or jet) is sold, used or distributed, the tax rate shall be three cents per gallon.

(3)

In lieu of claiming refund of the tax paid on motor vehicle fuel consumed by such dealer in nonhighway use as provided in ORS 319.280 (Refunds generally), 319.290 (Limitation on applications for refunds) and 319.320 (Refund of tax on fuel used in operation of vehicles over certain roads or private property), or of any prior erroneous payment of license tax made to the state by such dealer, the dealer may show such motor vehicle fuel as a credit or deduction on the monthly statement and payment of tax.

(4)

The license tax computed on the basis of the sale, use, distribution or withdrawal of motor vehicle or aircraft fuel may not be imposed wherever such tax is prohibited by the Constitution or laws of the United States with respect to such tax. [Amended by 1955 c.730 §2; 1959 c.505 §2; 1967 c.463 §1; 1973 c.376 §1; 1977 c.293 §1; 1981 c.698 §1; 1983 c.727 §§1,5; 1985 c.209 §12; 1987 c.610 §2; 1987 c.899 §§8,10, 14; 1989 c.664 §2; 1989 c.865 §1; 1991 c.497 §§6,7; 1999 c.1037 §§1,3; 2009 c.865 §48; 2011 c.101 §1; 2015 c.700 §1; 2017 c.750 §40]
Note: The amendments to 319.020 (Monthly statement by dealer) by section 4, chapter 700, Oregon Laws 2015, apply to aircraft fuel sold, used or distributed on or after January 1, 2022. See section 6, chapter 700, Oregon Laws 2015. The text that applies to aircraft fuel sold, used or distributed on or after January 1, 2022, including amendments by section 41, chapter 750, Oregon Laws 2017, is set forth for the user’s convenience.
319.020 (Monthly statement by dealer). (1) Subject to subsections (2) to (4) of this section, in addition to the taxes otherwise provided for by law, every dealer engaging in the dealer’s own name, or in the name of others, in the first sale, use or distribution of motor vehicle fuel or aircraft fuel or withdrawal of motor vehicle fuel or aircraft fuel for sale, use or distribution within areas in this state within which the state lacks the power to tax the sale, use or distribution of motor vehicle fuel or aircraft fuel, shall:

(a)

Not later than the 25th day of each calendar month, render a statement to the Department of Transportation of all motor vehicle fuel or aircraft fuel sold, used, distributed or so withdrawn by the dealer in the State of Oregon as well as all such fuel sold, used or distributed in this state by a purchaser thereof upon which sale, use or distribution the dealer has assumed liability for the applicable license tax during the preceding calendar month. The dealer shall render the statement to the department in the manner provided by the department by rule.

(b)

Except as provided in ORS 319.270 (Fuel sold or distributed to dealers), pay a license tax computed on the basis of 34 cents per gallon on the first sale, use or distribution of such motor vehicle fuel or aircraft fuel so sold, used, distributed or withdrawn as shown by such statement in the manner and within the time provided in ORS 319.010 (Definitions for ORS 319.010 to 319.430) to 319.430 (Savings clause).

(2)

When aircraft fuel is sold, used or distributed by a dealer, the license tax shall be computed on the basis of nine cents per gallon of fuel so sold, used or distributed, except that when aircraft fuel usable in aircraft operated by turbine engines (turbo-prop or jet) is sold, used or distributed, the tax rate shall be one cent per gallon.

(3)

In lieu of claiming refund of the tax paid on motor vehicle fuel consumed by such dealer in nonhighway use as provided in ORS 319.280 (Refunds generally), 319.290 (Limitation on applications for refunds) and 319.320 (Refund of tax on fuel used in operation of vehicles over certain roads or private property), or of any prior erroneous payment of license tax made to the state by such dealer, the dealer may show such motor vehicle fuel as a credit or deduction on the monthly statement and payment of tax.

(4)

The license tax computed on the basis of the sale, use, distribution or withdrawal of motor vehicle or aircraft fuel may not be imposed wherever such tax is prohibited by the Constitution or laws of the United States with respect to such tax.
Note: Section 45, chapter 750, Oregon Laws 2017, provides:
Sec. 45. (1)(a) For calendar years beginning on or after January 1, 2020, the rates determined under ORS 319.020 (Monthly statement by dealer) (1)(b) and 319.530 (Imposition of tax) (1) shall each be increased by two cents only if the Oregon Transportation Commission submits a report in the manner provided by ORS 192.245 (Form of report to legislature) on or before December 1, 2019, to the Joint Committee on Transportation established under ORS 171.858 (Joint Committee on Transportation) stating that:

(A)

The commission has identified sufficient shovel-ready highway projects and highway maintenance or operational uses of the increased fuel tax revenue to justify the increase;

(B)

The set of uniform standards required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (1) has been developed and the standards are being followed;

(C)

The reports received from cities and counties under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (2) have been submitted and posted by the commission as required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (3);

(D)

The Department of Transportation is implementing the registration fees and title fees described in ORS 803.091 (Title fees based on miles per gallon) and 803.422 (Registration fees based on miles per gallon); and

(E)

The Interstate 205 Active Traffic Management Project and the Interstate 205 Corridor Bottleneck Project have been completed.

(b)

In addition to the facts stated in the report required under paragraph (a) of this subsection, the Oregon Transportation Commission shall also submit with the report:

(A)

A list of the shovel-ready highway projects the commission expects to undertake with the revenue that will become available as a result of the increase;

(B)

The amount of bonds the commission considers necessary to be issued to complete shovel-ready highway projects scheduled to be commenced after January 1, 2020;

(C)

The construction and financial status of uncompleted in-progress projects exceeding $20 million identified in chapter 750, Oregon Laws 2017;

(D)

The status of the Treasure Valley Intermodal Facility Project and the Value Pricing Set-Up Project;

(E)

Design, cost analysis and construction option packages for the Interstate 5 Rose Quarter Project for consideration by the Legislative Assembly; and

(F)

The design, construction, financial status and progress of projects costing more than $20 million that are identified in chapter 750, Oregon Laws 2017, including, but not limited to, the Interstate 205 Abernethy Bridge Project, the Interstate 205 Freeway Widening Project, the State Highway 217 Northbound Project and the State Highway 217 Southbound Project, and any other state transportation projects implemented after October 6, 2017.

(2)

(a) For calendar years beginning on or after January 1, 2022, the rates determined under ORS 319.020 (Monthly statement by dealer) (1)(b) and 319.530 (Imposition of tax) (1) and subsection (1) of this section shall each be increased by two cents only if the Oregon Transportation Commission submits a report in the manner provided by ORS 192.245 (Form of report to legislature) on or before December 1, 2021, to the Joint Committee on Transportation established under ORS 171.858 (Joint Committee on Transportation) stating that:

(A)

The Continuous Improvement Advisory Committee appointed under ORS 184.665 (Continuous Improvement Advisory Committee) has reviewed and reported to the commission on all transportation projects costing $50 million or more and completed not less than six months prior to the date of the report required under this paragraph;

(B)

The recommendations for improvement reported by the Continuous Improvement Advisory Committee to the commission at least six months prior to the date of the report required under this paragraph, and approved by the commission, have been implemented or plans for implementation have been developed;

(C)

The commission has identified sufficient shovel-ready highway projects and highway maintenance or operational uses of the increased fuel tax revenue to justify the increase;

(D)

The set of uniform standards required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (1) has been developed and the standards are being followed;

(E)

The reports received from cities and counties under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (2) have been posted by the commission as required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (3);

(F)

Under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (4), payments from the State Highway Fund have been withheld from cities and counties that failed to submit reports as required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (2); and

(G)

The Department of Transportation is implementing the registration fees and title fees described in ORS 803.091 (Title fees based on miles per gallon) and 803.422 (Registration fees based on miles per gallon).

(b)

In addition to the facts stated in the report required under paragraph (a) of this subsection, the Oregon Transportation Commission shall also identify in the report:

(A)

A list of the shovel-ready highway projects the commission expects to undertake with the revenue that will become available as a result of the increase;

(B)

The amount of bonds the commission considers necessary to be issued to complete shovel-ready highway projects scheduled to be commenced after January 1, 2022;

(C)

The construction and financial status of uncompleted in-progress projects exceeding $50 million identified in chapter 750, Oregon Laws 2017; and

(D)

The design, construction, financial status and progress of projects costing more than $20 million that are identified in chapter 750, Oregon Laws 2017, including, but not limited to, the Interstate 5 Rose Quarter Project, the Interstate 205 Abernethy Bridge Project, the Interstate 205 Freeway Widening Project, the State Highway 217 Northbound Project, the Newberg-Dundee Bypass Project and the State Highway 217 Southbound Project, and any other state transportation projects implemented after October 6, 2017.

(c)

If the Commissioner of the Bureau of Labor and Industries has found substantial evidence, under ORS 279C.306 (Administrative enforcement of least-cost policy for public improvements), that a contracting agency that would otherwise receive increased amounts of fuel tax revenues pursuant to this section on or after January 1, 2022, has violated ORS 279C.305 (Least-cost policy for public improvements) within the five years immediately preceding the date of the commissioner’s finding, or has materially breached an agreement entered into pursuant to ORS 279C.306 (Administrative enforcement of least-cost policy for public improvements), the Department of Transportation shall withhold the increased amounts until the final resolution of the violation or breach is determined under ORS 279C.306 (Administrative enforcement of least-cost policy for public improvements).

(3)

(a) For calendar years beginning on or after January 1, 2024, the rates determined under ORS 319.020 (Monthly statement by dealer) (1)(b) and 319.530 (Imposition of tax) (1) and subsections (1) and (2) of this section shall each be increased by two cents only if the Oregon Transportation Commission submits a report in the manner provided by ORS 192.245 (Form of report to legislature) on or before December 1, 2023, to the Joint Committee on Transportation established under ORS 171.858 (Joint Committee on Transportation) stating that:

(A)

The Continuous Improvement Advisory Committee appointed under ORS 184.665 (Continuous Improvement Advisory Committee) has reviewed and reported to the commission on all transportation projects costing $50 million or more and completed not less than six months prior to the date of the report required under this paragraph;

(B)

The recommendations for improvement reported by the Continuous Improvement Advisory Committee to the commission at least six months prior to the date of the report required under this paragraph, and approved by the commission, have been implemented or plans for implementation have been developed;

(C)

The commission has identified sufficient shovel-ready highway projects and highway maintenance or operational uses of the increased fuel tax revenue to justify the increase;

(D)

The set of uniform standards required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (1) has been developed and the standards are being followed;

(E)

The reports received from cities and counties under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (2) have been posted by the commission as required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (3); and

(F)

Under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (4), payments from the State Highway Fund have been withheld from cities and counties that failed to submit reports as required under ORS 184.657 (Describing and reporting condition of transportation infrastructure) (2).

(b)

In addition to the facts stated in the report required under paragraph (a) of this subsection, the Oregon Transportation Commission shall also submit with the report:

(A)

A list of the shovel-ready highway projects the commission expects to undertake with the revenue that will become available as a result of the increase;

(B)

The amount of bonds the commission considers necessary to be issued to complete shovel-ready highway projects scheduled to be commenced after January 1, 2024; and

(C)

The design, construction, financial status and progress of projects costing more than $20 million that are identified in chapter 750, Oregon Laws 2017, including, but not limited to, the Interstate 5 Rose Quarter Project, the Interstate 205 Abernethy Bridge Project, the Interstate 205 Freeway Widening Project, the State Highway 217 Northbound Project, the Newberg-Dundee Bypass Project and the State Highway 217 Southbound Project, and any other state transportation projects implemented after October 6, 2017.

(c)

If the Commissioner of the Bureau of Labor and Industries has found substantial evidence, under ORS 279C.306 (Administrative enforcement of least-cost policy for public improvements), that a contracting agency that would otherwise receive increased amounts of fuel tax revenues pursuant to this section on or after January 1, 2024, has violated ORS 279C.305 (Least-cost policy for public improvements) within the five years immediately preceding the date of the commissioner’s finding, or has materially breached an agreement entered into pursuant to ORS 279C.306 (Administrative enforcement of least-cost policy for public improvements), the Department of Transportation shall withhold the increased amounts until the final resolution of the violation or breach is determined under ORS 279C.306 (Administrative enforcement of least-cost policy for public improvements). [2017 c.750 §45; 2018 c.93 §43; 2019 c.250 §1; 2019 c.491 §7]
Note: Sections 7 and 8, chapter 700, Oregon Laws 2015, provide:
Sec. 7. (1) The following amounts shall be distributed in the manner prescribed in this section:

(a)

Any amount of tax on aircraft fuel usable in aircraft operated by turbine engines that is computed on a basis in excess of one cent per gallon and any amount of tax on all other aircraft fuel that is computed on a basis in excess of nine cents per gallon, under ORS 319.020 (Monthly statement by dealer) (2); and

(b)

Any amount of tax on aircraft fuel usable in aircraft operated by turbine engines in excess of one cent per gallon and any amount of tax on all other aircraft fuel in excess of nine cents per gallon, that is deducted before the refunding of tax under ORS 319.330 (Refunds to purchasers of fuel for aircraft) (1).

(2)

(a) Applications for distributions under subsections (5) and (6) of this section may not be approved unless the applicant demonstrates a commitment to contribute at least five percent of the costs of the project to which the application relates. The Oregon Department of Aviation shall adopt rules for purposes of this paragraph.

(b)

The department may adopt rules that:

(A)

Set higher minimum contribution commitment requirements; or

(B)

Establish maximum grant amounts.

(3)

(a) The State Aviation Board shall establish a review committee composed of one member from each of the area commissions on transportation chartered by the Oregon Transportation Commission.

(b)

The review committee shall meet as necessary to review applications for distributions of amounts pursuant to this section. In reviewing applications, the review committee shall consider:

(A)

Whether a proposed project:

(i)

Reduces transportation costs for Oregon businesses or improves access to jobs and sources of labor in this state;

(ii)

Results in an economic benefit to this state;
(iii) Connects elements of Oregon’s aviation system in a way that will measurably improve utilization and efficiency of the system;

(iv)

Is ready for construction or implementation; and

(v)

Has a useful life expectancy that offers maximum benefit to this state; and

(B)

How much of the cost of the proposed project can be borne by the applicant from sources other than Oregon Department of Aviation funds or the Connect Oregon Fund.

(c)

The review committee shall recommend applications to the State Aviation Board for approval.

(4)

(a) Five percent of the amounts described in subsection (1) of this section are appropriated to the Oregon Department of Aviation for the costs of the department and the State Aviation Board in administering this section.

(b)

The remaining 95 percent of the amounts described in subsection (1) of this section shall be distributed pursuant to subsections (5) to (7) of this section.

(5)

Fifty percent of the amounts described in subsection (4)(b) of this section shall be prioritized in the following order and distributed for the following purposes:

(a)

First, to assist airports in Oregon with match requirements for Federal Aviation Administration Airport Improvement Program grants.

(b)

Second, to make grants for emergency preparedness and infrastructure projects, in accordance with the Oregon Resilience Plan or the Oregon Aviation Plan.

(c)

Third, to make grants for:

(A)

Services critical or essential to aviation, including, but not limited to, fuel, sewer, water and weather equipment;

(B)

Aviation-related business development, including, but not limited to, hangars, parking for business aircraft and related facilities; or

(C)

Airport development for local economic benefit, including, but not limited to, signs and marketing.

(6)

Twenty-five percent of the amounts described in subsection (4)(b) of this section shall be distributed for the purpose of assisting commercial air service to rural Oregon.

(7)

Twenty-five percent of the amounts described in subsection (4)(b) of this section shall be distributed to state-owned airports for the purposes of:

(a)

Safety improvements recommended by the State Aviation Board and local community airports.

(b)

Infrastructure projects at public use airports.

(8)

(a) The State Aviation Board shall submit reports, in the manner provided in ORS 192.245 (Form of report to legislature) and paragraph (b) of this subsection, that describe in detail the projects for which applications have been submitted and approved, the airports affected, the names of the applicants and the persons who will perform the work proposed in the applications, the progress of projects for which applications have been approved and any other information the board considers necessary for a comprehensive analysis of the implementation of this section.

(b)

The reports described in paragraph (a) of this subsection shall be submitted:

(A)

Not later than February 10 of each year to the committees of the Legislative Assembly related to air transportation; and

(B)

Not later than September 30 of each year to the interim committees of the Legislative Assembly related to air transportation. [2015 c.700 §7; 2017 c.750 §80a; 2019 c.485 §1; 2019 c.491 §26]
Sec. 8. (1) Section 7 of this 2015 Act is repealed on January 2, 2022.

(2)

Amounts described in section 7 (1) of this 2015 Act that are uncommitted on the date specified in subsection (1) of this section for distributions made pursuant to section 7 (5) to (7) of this 2015 Act may be expended as other aviation fuel tax revenues are expended. [2015 c.700 §8]
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Last accessed
May. 15, 2020