SALEM, Ore. (KATU) — Oregon lawmakers are considering a transportation proposal aimed at achieving greater equity within the state’s trucking industry, which advocates argue has faced years of excessive taxation.
“This legislation represents the most comprehensive policy change for the trucking sector in three decades,” stated Jana Jarvis, president and CEO of the Oregon Trucking Association. “It addresses our longstanding issue of overtaxation and updates our tax framework to better align with national standards.”
Oregon’s truckers encounter some of the most intricate tax regulations in the United States. Trucks are subject to both a per-gallon diesel tax and a separate “weight-mile” tax based on the vehicle’s weight and the distances traveled.
At present, trucking companies must report their fuel purchases and miles driven in Oregon to the state, subsequently calculating and paying the weight-mile tax through a complex and lengthy process.
As one of the few states imposing a weight-mile tax on trucks, Oregon’s existing system involves 86 different tax rate tables. The proposed bill seeks to simplify this structure to just 10 tables.
“Streamlining these tax tables significantly reduces complexity, benefiting both state administration and truckers,” explained Oregon Rep. Susan McLain, D-Forest Grove, co-chair of the Joint Committee on Transportation for the upcoming 2025 regular session. “Tax calculations should be straightforward, and simplification is essential.”
The new legislation would also initiate diesel fuel taxation at the pump starting in 2029, mirroring the taxation of gasoline for passenger vehicles. This would streamline tax reporting and is expected to curb tax evasion from out-of-state carriers.
According to the Oregon Trucking Association, truck companies in Oregon currently face the highest taxes in the nation, approximately $7,000 more than those in the second-highest taxed state.
The bill will enhance the state’s Highway Cost Allocation Study (HCAS), which determines if cars or trucks are paying a fair share of road maintenance costs. If the study reveals that either group is overpaying by more than 5%, the Legislature must respond within 120 days to adjust taxes accordingly.
Jarvis noted that truckers currently pay 22% more in transportation taxes compared to passenger vehicles, a figure that has fluctuated between 16% and 36% in recent years. This proposal represents a significant step toward modernizing Oregon’s tax system, ensuring fairness, and reducing costs for consumers.
The legislative special session is set to commence on Friday, August 29. McLain anticipates the process could take between two to six days, emphasizing the importance of thoroughness over speed in deliberating the proposed bill.
