Authority to Audit
Highway Use Tax
If the department is not satisfied with the tax report as filed or no tax report was filed, it will give the motor carrier written notice of any proposed assessment of additional taxes or fees due. If it is determined that additional taxes or fees are due, there are:
- • Late payment charges of an additional 10 percent of the taxes or fees due.
- • Penalty and interest charges:
- o If the additional assessment exceeds by at least 5 percent but not more than 15 percent of the taxes or fees due, a penalty of 5 percent will be added.
- o If the additional assessment exceeds by more than 15 percent of the taxes or fees due, a penalty of 20 percent will be added.
- o If the tax report is not filed, a penalty of 25 percent of the taxes or fees due will be added.
- o If the final audit assessment is not paid when due, an additional penalty in the amount of 10 percent of the tax assessment is added.
- - Interest Charge on every additional assessment shall bear interest at the rate of 1 percent per month, or fraction of a month, until paid.
International Fuel Tax Agreement (IFTA)
Oregon participates in
IFTA as a service to Oregon-based carriers operating outside the state by distributing fuel taxes on behalf of the motor carriers. The Motor Carrier Audit Section is responsible for checking that Oregon-based carriers are in compliance with IFTA requirements related to their operations in other states and provinces. Auditors check that carriers accurately report the miles traveled and fuel purchased in all jurisdictions in order to verify the fuel taxes owed for those operations.
International Registration Plan (IRP)
The
International Registration Plan is a registration reciprocity agreement among states of the United States, the District of Columbia and provinces of Canada providing for payment of apportionable fees on the basis of total distance operated in all jurisdictions. The Motor Carrier Audit Section is responsible for checking that Oregon-based carriers are in compliance with IRP requirements related to their operations in Oregon as well as other states and provinces.
Audit Appeal Rights
Petition for Reassessment
A motor carrier may request a reassessment and/or hearing if they disagree with a Highway Use Tax, International Fuel Tax Agreement or International Registration Plan audit assessment. An attempt will be made to resolve the matter without a hearing. In the event an agreement is not reached, the motor carrier will be given at least 10 days notice of the time and place for the hearing.
Request for Waiver or Reduction of Late Payment, Penalty and/or Interest Charges
A request for waiver or reduction is appropriate if the motor carrier agrees with the tax assessment but believes that consideration of other charges is warranted.
Instructions
The Petition for Reassessment and Request for Waiver/Reduction:
- Must be in writing and specifically state the reasons a reassessment or waiver is justified.
- Must be received by ODOT Commerce and Compliance Division on or before the date the audit becomes final as shown on the Notice of Highway Use Tax Assessment, the International Fuel Tax Agreement Notice of Audit Assessment or the International Registration Plan Notice of Audit Assessment, whichever applies.
- Must be mailed or faxed to:
455 Airport Road SE, Building A
Salem, OR 97301
Fax: 503-373-7952
File for a Waiver or Reduction
When a request for waiver or reduction is filed within the 30-day period, staff will review the request and a written response will be returned to the motor carrier. Failure to request a waiver or reduction by the final date of the audit will result in forfeiture of the right to appeal the assessment.
Highway Use Tax
Waiver or reduction of penalty and/or interest charges is rare and unusual. Waiver of late payment charges is more common but depends on a good payment history demonstrated by at least 75% of the tax reports filed timely AND the tax assessed in the audit being 15% or less of the total tax reported.
International Fuel Tax Agreement (IFTA)
You may request a waiver of the assessed penalty charge. Interest due other jurisdictions cannot be waived by Oregon. Address information for other jurisdictions will be provided upon request so that you may contact them separately for waiver consideration.