Major fuel tax changes coming to Oregon

Weight-mile tax (WMT) simplification

The WMT structure is simplified starting July 1, 2027. Tax weight will be the same as registration weight. Several transportation fees including Flat Fees, WMT, and Road Use Assessment Fee (RUAF) rates will see rate changes.

Carriers will be asked to amend their enrolled vehicle weights in spring 2027.

Oregon joining IFTA

The Oregon Department of Transportation (ODOT) will also implement a hybrid tax system in accordance with House Bill 3991. Heavy trucks will start paying fuels tax along with reduced WMT. Oregon will become a full participant in the IFTA program and begin collecting and distributing IFTA monies from all carriers, as opposed to only collecting IFTA taxes and fees for Oregon-based carriers.

Other important changes that will occur at the same time include:

• The Oregon Registration Commercial Authority Application (ORCAA) Implementation Project will create a more versatile and modern commercial vehicle registration and IFTA system.
• Diesel becomes a motor vehicle fuel taxed at first sale in Oregon.
• The WMT Electric Rates Table will be deployed for heavy electric commercial vehicles (EVs).
• WMT rates for non-EVs will be reduced to accommodate for a hybrid taxation model with the added diesel tax.
• Dyed diesel and IFTA enforcement will begin.

On July 1, 2029, RUAF, WMT rates, and flat fee rates change in alignment with diesel tax implementation.