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Frequently Asked Questions

If you have questions regarding record keeping, documentation or reporting requirements please see our Compliance Guide page.
Please contact us by email at ODOTFuelsTax@odot.oregon.gov or by phone at 503-378-8150 if you have additional questions, comments or concerns.

Motor Vehicle Dealer

For purposes of the Oregon Motor Vehicle and Aircraft Fuel Dealer License Tax, motor vehicle fuel is mostly limited to gasoline and gasohol blends. It includes aviation gasoline and jet fuel. This definition also applies to Multnomah and Washington counties.


For purposes of the Motor Vehicle Fuel Dealer taxes for the cities of Portland, Troutdale, Reedsport, Woodburn, Eugene, Springfield, Cottage Grove, Veneta, Tigard, Milwaukie, Coquille, Astoria, Warrenton, Canby, Newport, and Hood River the definition of motor vehicle fuel expands to include gasoline, gasohol blends, and (highway) diesel fuel products.


Diesel fuel is not taxable as a motor vehicle fuel for the purposes of the Oregon Motor Vehicle Fuel Dealer License tax, nor is it taxable for Multnomah County, Washington County or City of Coburg. However, diesel fuel used on the highway is taxable by the State of Oregon under Oregon Use Fuel law.

Refer to the appropriate state, county, or city statute to confirm what fuels are included as motor vehicle fuels in a jurisdiction.

​Aircraft Fuel includes aviation gasoline and jet fuel. This fuel is taxable only for the purposes of the Oregon Motor Vehicle and Aircraft Fuel Dealer License Tax.

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Pure or denatured ethanol is not taxable until it is blended with motor vehicle fuel for highway use.

There is no licensing requirement for sale, use, and distribution of pure or denatured ethanol. Records of ethanol sales may be requested by the Fuels Tax Group.

Dealers who purchase pure or denatured ethanol to blend into motor vehicle fuel must be licensed and pay tax on the amount blended. Ethanol blended gasoline is taxed at $0.40 per gallon. The same rules apply to county and city jurisdictions according to applicable county and city ordinances.

Contact the Oregon Department of Agriculture and the City of Portland for further information concerning ethanol requirements in Oregon.

​For the purposes of the Oregon Motor Vehicle and Aircraft Fuel Dealer License tax, a "dealer" means any person who imports, exports, produces, refines, manufactures, blends, or compounds motor vehicle fuel and/or aircraft fuels in Oregon.

For the purposes of the Multnomah County and Washington County Motor Vehicle Fuel Dealer License taxes a "dealer" means any person who imports, exports, produces, refines, manufactures, blends, or compounds motor vehicle fuel in the county.

For the purposes of the Motor Vehicle Fuel Dealer taxes imposed by the cities of Woodburn, Eugene, Springfield, Veneta, Tigard, Milwaukie, Coquille, Coburg, Astoria, Warrenton, Canby, Newport, and Hood River a "dealer" means any person who imports, produces, refines, manufactures, blends, or compounds motor vehicle fuel in the city.

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​The due date will be on the next business day.

Reports are timely if received and paid on or before the due date.

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Any person who performs the acts of a dealer in the jurisdiction in which business is being conducted must be licensed as a dealer.

Please see our License Program page for a detailed description.

You can apply for a license online on the Oregon Fuels Tax System. We offer a tutorial on the motor vehicle fuel application process with visuals on our tutorial page.

​Yes, online payment is accessible through Oregon's Fuels Tax System website.

Yes, if the county or city is administered by the Fuels Tax Group. All jurisdictions administered by the Fuels Tax Group are combined; county and city reporting is entered on Schedule 5LO.
 
County and city reporting for jurisdictions not administered by the Fuels Tax Group are submitted directly to that jurisdiction.

For more information, please see the Motor Vehicle Dealer tutorial.

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Changes to a report are submitted by amendments to the original report. The original filed report, plus the updated report, must equal the correct gallons and tax that should have been reported for that period.

We require the applicable schedule(s) showing detail of the gallons increased or decreased as shown on the amended report. Amended reports submitted after the due date of the original report are considered late; interest and penalty will apply. 

If you have questions about amending a report, documentation requirements or calculation assistance, please contact us​.

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​Yes. As long as your Motor Vehicle Dealer license is active, you are required to file reports every month. A $25 penalty applies to late Oregon reports with zero tax liability.

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​Yes. The Portland terminal is located within Multnomah County. You must be licensed in Multnomah County to pull fuel from the terminal.

​No. The Eugene terminal is located outside the city limits of the city of Eugene. You need not be licensed in the city of Eugene if all of the fuel you pull from the Eugene terminal is delivered to cities outside the city limits of Eugene and you do not otherwise import, use, sell, or distribute fuel in the city for which tax has not yet been collected. ​

You are required to keep the following records for a period of at least three years:

  • Inventory records.
  • Bill of lading or invoice for each purchase.
  • Bill of lading or invoice for all sales. ​

​No, effective January 1, 2022, House Bill 3055 authorizes Motor Vehicle Fuel Dealers to sell tax-exempt fuel to Indian tribes, tribal entities, or tribal member entities who have certified with the Department.

Prior to selling tax-exempt Motor Vehicle Fuel to Indian tribes, tribal entities, or tribal member entities, Motor Vehicle Fuel Dealers must ensure that the fuel purchaser is eligible to purchase tax-exempt fuel. If a Motor Vehicle Fuel Dealer sells ex-tax Motor Vehicle Fuel to an Indian tribe, tribal entity or tribal member entity that is not certified by the Department, that Dealer is liable for the tax owed on the sale of the fuel. For more details, see our Indian Tribal Exemption page and list of certified Indian tribes and entities.

​Motor Vehicle Fuel Dealers will list tax-exempt sales of all fuels to Indian tribes, tribal entities, or tribal member entities on their Motor Vehicle Fuel Dealer Tax report, using Schedule 10T. All tax reports must be filed in compliance with ORS 319.020, 319.190, and Oregon Administrative Rules, Chapter 735, Division 170.​

 Use Fuel User

Use fuel is the general term used to refer to all other fuels besides gasoline, gasohol blends or aircraft fuels.

Common examples include all types of diesel, biodiesel and natural gas products (CNG, propane, etc.).

Refer to the appropriate state, county, or city statute to confirm what fuels are included as use fuels in a jurisdiction.

 

When biodiesel is used to propel motor vehicles, the fuel becomes taxable as an Oregon Use Fuel. The use fuel rate is $0.40 per gallon, whether the fuel is pure biodiesel (B100) or used in combination with petroleum based diesel products, regardless of the ratio. 

Biodiesel refers to the pure fuel before blending with petroleum diesel fuel. Biodiesel blends are noted as BXX with XX representing the percentage of biodiesel contained in the blend (i.e., B20 is 20% biodiesel, 80% petroleum diesel).

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​Persons using fuel other than gasoline to propel any motor vehicle, except those exempted by law.

Oregon statute requires user licenses for any F-plated vehicle over 26,000 pounds, even if you pay tax to your supplier.

A user license is not required if the motor vehicle is 26,000 pounds or less and the fuel tax is paid to the seller at the time of sale.

Applications for licensing is completed on the Oregon Fuels Tax ​System. We offer tutorials on registration and licensing for the online filing site.

There are no fees to get licensed or for emblems, however you will need to provide a bond or deposit in lieu of bond.

For a detailed list of records requirements please see our compliance guide page.

​No, as long as ALL miles are reported to the Commerce and Compliance Division and the weight-mile tax is paid.

Reporting periods are monthly, quarterly or annually depending on types of vehicles licensed and the volume of fuel used.

Reporting periods:

  • Monthly
    • First day of the month through the last
  • Quarterly
    • First: January 1 - March 31
    • Second: April 1 - June 30
    • Third: July 1 - September 30
    • Fourth: October 1 - December 31
  • Annually
    • January 1 - December 31

Reports are due on the 20th of the month following the end reporting period.

You must contact the Fuels Tax Group to request a change in reporting period: unless we contact you, DO NOT change your method of reporting.

 

​Yes, as long as your license is active, you need to file all reports whether you use any fuel or not. Failure to file reports may result in assessments of delinquent tax, penalty and interest.

 Those miles would be the taxable gallons on your use fuel user report.  

Being registered with IFTA does not qualify for exemption. You are only exempt from the ​use fuel tax when ALL of the Oregon miles are reported and paid to Motor Carrier.

For further information please contact the IFTA group at 503-378-5948 and/or the Fuels Tax Group at 503-378-8150.

Emblems are a credential for licensees to present so they can purchase ex-tax diesel. They are used for cardlock cards and at retail sites.

Licensees manage their emblems online with the Oregon Fuels Tax System. They must be renewed annually.

There are no fees for emblems. ​

The due date will be on the next business day.

Reports are timely if received and paid on or before the due date. ​

Yes, if the county or city is administered by the Fuels Tax Group. All jurisdictions administered by the Fuels Tax Group are combined.

County and city reporting for jurisdictions not administered by the Fuels Tax Group are submitted directly to that jurisdiction.​

Yes. You can pay your taxes online through Oregon's Fuels Tax System website when you file your report online.​

​Changes to a report are submitted through an amendment to that report.  The originally filed report, plus the supplemental report, must equal the correct gallons and tax that should have been reported for that period.
The applicable schedule(s) showing detail of the gallons increased or decreased as shown on the amended report is required. Amended reports submitted after the due date of the original report are considered late; interest and penalty will apply. 

Use Fuel Seller 

Use fuel is the general term used to refer to all other fuels besides gasoline, gasohol blends or aircraft fuels. Common examples include all types of diesel, biodiesel and natural gas products (CNG, propane, etc.). Specific fuel descriptions can be found in ORS 319.  
 
Refer to the appropriate state, county, or city statute to confirm what fuels are included as use fuels in a jurisdiction.
 

​Biodiesel refers to the pure fuel before blending with petroleum diesel fuel. Biodiesel blends are denoted as "BXX" with "XX" the percentage of biodiesel contained in the blend (i.e., B20 is 20% biodiesel, 80% petroleum diesel).

​​If liquefied petroleum gas (propane) is sold for use in a motor vehicle, a Use Fuel Seller License is required.
 
You must convert the taxable propane gallons to use fuel gallons, by dividing the gallons sold by 1.353, then multiplying by the $0.40 per gallon use fuel tax rate.

Sales of propane into containers are not subject to the Oregon use fuel tax.

A seller sells use fuel to a user. Sale types include:
  • Bulk
  • Fleet
  • Cardlock
  • Retail
 
To see a full description of operations that classify you as a seller see our License Programs page.
 
To apply for a seller license, please go to our Oregon Fuels Tax System website. Tutorials with visuals are available under our Online Tutorial page.
 

​​When biodiesel is used to propel motor vehicles, the fuel becomes taxable as an Oregon Use Fuel under ORS 319.520(7). The rate is $0.40 per gallon, whether the fuel is pure biodiesel (B100) or mixed with petroleum-based diesel products, regardless of the ratio.​  


No. The seller should not include Extended Network Sales on their Fuels Tax Seller Report. The retailer reports and remits the tax to the Fuels Tax Group.

Accepting cardlock cards as a method of payment does not make you a nonretail (cardlock) seller. You are a retail seller.
 
You may not sell ex-tax just because the payment is via cardlock card. The method of payment (cash, credit card, cardlock card, etc.) does not matter whether or not the sale is taxable. For sales as ex-tax, the seller must document the ex-tax sale.

​​​To qualify as a non-retail seller, you must have an unattended facility accessible only by cardlock card. The unattended portion of a retail facility must be separate from the retail operations that is accessible only by cardlock card.
 
Keylock operations that cannot identify individual fueling are considered retail.

​A vehicle may receive use fuel exempt of the Oregon tax if the vehicle:
  • Has an ODOT weight receipt, temporary receipt, or temporary pass.
  • Has US Government plates, Oregon state government ‘E’ plates.
  • Has a valid Oregon use fuel User emblem.

All tax-exempt sales of use fuel must be documented with a tax-exempt invoice. 

A use fuel invoice must show at least the following (ORS 319.671)​:
  • The seller's name and address.
  • The complete date of sale (month, day, year).
  • The amount of the sale in gallons.
  • The name and address of the customer.
  • The credential as to why it is an ex-tax sale. Vehicle, equipment or container information including:
    • The ODOT weight receipt, temporary receipt, or temporary pass, if the vehicle is subject to weight-mile taxes.
    • The emblem number, if the vehicle bears a user´s emblem.
    • The U.S. government license plate number or Oregon state ‘E’ plate number if the vehicle bears no valid user's emblem or permit issued by the department.
    • A description of the container or equipment (can, slip tank, tractor, backhoe, etc.).
    • In cases where equipment is fueled from the same fuel tank as the motor vehicle, the pump must be stopped between the fueling of the motor vehicle and equipment. Document the purchases separately.

To sell use fuel exempt of the Oregon tax at a non-retail facility you must:
  • Have your customer complete and sign an exemption certificate.
  • Validate the credential based on the reason for exemption. For example, if reason 2 is selected, list the current year emblem numbers issued by the Fuels Tax Group for each vehicle.
  • Issue ex-tax cards by vehicle (plate number in description) or specific description of equipment or container (tractors, slip tank, etc.).

You are required to keep the Oregon Exemption Certificate on file. A signed certificate validates that the customer accepts all liability for any cards used. Your customer is responsible for keeping the certificate current and complete. If you do not have an Oregon Exemption Certificate on file, you are responsible for the tax on all of the customer's Oregon use fuel purchases.

NOTE: if your customer wants cards issued by employee, location or generic description (equipment, off road, etc.) those cards must be issued as taxed.

 

Both tank readings and pump meter readings are to be taken at the close of business on the last day of your reporting period; end of month, end of quarter or end of year.
 
If you operate a 24-hour business, both tank and pump meter readings should be taken at the end of the last shift of the last business day of your reporting period.
 
(ORS 319.697, OAR 735-176-0010​)

No. Reporting is accounting for ALL fuel purchased. This includes identifying taxed and ex-tax sales. This is why seller reports have schedule for Use Fuel Handled (stock summary), Schedule of Receipts (fuel purchased), Pump Meter Readings and Retail ex-tax.

No. Biodiesel is made from vegetable oil through a chemical process called trans-esterification, which converts natural oils and fats in fatty acid methyl esters.

​No, the retailer will document the transaction at the time of sale and forgive the tax if appropriate.

Yes, you can pay your taxes online through Oregon's Fuels Tax System website when you file your report online.​

For a detailed list of reporting requirements, please visit our compliance guide page. ​

The due date will be on the next business day.

Reports are timely if received and paid on or before the due date.​

​Changes to a report are submitted through an amendment to that report.  The originally filed report, plus the supplemental report, must equal the correct gallons and tax that should have been reported for that period.


The applicable schedule(s) showing detail of the gallons increased or decreased as shown on the amended report is required. Amended reports submitted after the due date of the original report are considered late; interest and penalty will apply. 

Yes. You must file a zero report to affirm that there is no tax due for that reporting period.​