Fleets and Fuel Tax

Fleets and Fuel Tax

July 8, 2015 | OReGO Staff

Fleets come in lots of forms –over-the-road trucks, local delivery vans, light duty vehicles, construction, and variations on these themes. Some of these vehicles pay state and federal fuel taxes; some pay one or the other; some pay weight mile taxes. And some don’t pay any taxes.

Are fleets welcome in OReGO?

Absolutely. We are testing how this program will work for all Oregonians. The more diversity we have, the better. And fleets bring something unique to the OReGO table.

How are fleets currently taxed?

Fuels tax has two component parts: motor vehicle fuel and use fuel. Confusing right? Well, think of it this way: motor vehicle fuel is generally gas (and gas blends like our 10% ethanol blended gasoline) and use fuel is generally diesel, CNG, and propane. Gas is taxed right after it’s placed into a tanker and before it is delivered to a service station near you. So, when you buy gas the tax has already been paid by the station owner.

Diesel and other alternative fuels like compressed natural gas and propane are not taxed until they into a fuel tank. Why? Well, that allows the trucking industry to avoid paying fuel tax because they are paying weight-mile taxes. Trucks over 26,000 pounds (that usually use diesel or some other alternative like compressed natural gas) just pay weight-mile taxes (and the federal fuel tax). Sellers of diesel (and those other alternative fuels) have to record when they sell fuel that is subject to an exemption.

What fleets are allowed?

Any fleet is allowed in OReGO, so long as:

  • The vehicles are less than 10,000 pounds; and
  • The vehicles are currently registered in Oregon.

If the fleet is publicly owned (city, county, state, or school district), the vehicles must be gas-powered only, and must not have claimed gas tax refunds from the state within the past year.

If the fleet is CNG or propane, please call 503-986-7827 to see what account manager can support your fleet at this time.

How do I register my fleet?

On July 1st, the OReGO doors open to enrollment. Enroll one vehicle first, and wait for that vehicle to be approved. Once the account for that vehicle is established (it takes up to 2 business days), go into the account and add additional vehicles. This will enable all of your vehicles to be on the same account with the same payment information.

Welcome to OReGO!

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