Oregon's weight-distance tax will go up as a result of a bill raising the state fuel tax.


The American Trucking Associations' State Laws Newsletter reports that Oregon's legislature has passed a bill (H.B. 2001), which Governor Kulongoski is expected to sign, which among other things raises the rate of the state gas and diesel taxes by 25 percent. Motor carriers aren't subject to the diesel tax in Oregon, but pay a weight-distance tax instead. However, the rate of this tax is tied to the fuel tax rate, so it too will rise by 25 percent, to more than 16 cents a mile for a vehicle at 80,000 pounds.

Car and truck registration fees will also rise.

The Oregon Trucking Associations was able to support this large increase because of certain other features in the package, explains ATA. First, the increase in the weight-distance tax is postponed until October 2010. Second, the bill provides for almost $1 billion of transportation projects around the state, selected from a list prepared by the trucking industry. Finally, new and increased local transportation taxes in Oregon are subjected to a four-year moratorium and restrictions that continue after that.
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