Use Fuel Tax

Link to law: http://arcweb.sos.state.or.us/pages/rules/oars_700/oar_735/735_176.html
Published: 2015

The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

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DEPARTMENT OF TRANSPORTATION,

DRIVER AND MOTOR VEHICLE SERVICES DIVISION





 

DIVISION 176
USE FUEL TAX

735-176-0100
Definitions
(1) “Biodiesel” means a
fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable
oils or animal fats, designated B100, and meeting the requirements of ASTM D 6751.
(2) “Biodiesel blend”
means a blend of biodiesel fuel meeting ASTM D 6751 with petroleum-based diesel
fuel, designated BXX, where XX represents the volume percentage of biodiesel fuel
in the blend.
(3) “Bulk Distributor”
means an entity that sells bulk use fuel and is not otherwise qualified as a use
fuel seller (as defined by ORS 319.520(13)) or a licensed motor vehicle fuel dealer
(as defined by ORS 319.030 (6)), and is therefore not licensed with the state of
Oregon. A Bulk Distributor must comply with Administrative Rules chapter 735, Division
176.
(4) “Bulk Facility”
means a fixed storage location. The primary purpose of a bulk facility is to store
fuel that will be distributed to customers’ locations. Dispensing fuel at
the bulk facility into a vehicle or container is not prohibited, but the fuel may
be subject to tax and the bulk facility operator may be required to become licensed
as a Use Fuel Seller.
(5) “Cardlock Statement”
means the printed detail of customer purchases using a cardlock card. Each statement
shall contain:
(a) The card issuer’s
name and address;
(b) The customer’s
name and address; and
(c) The transaction activity
detailed by card number.
(6) “Derived from used
cooking oil” means the feedstock used to produce the biodiesel is 100% used
cooking oil.
(7) “Electronic Invoice”
means the data captured when a cardlock card is used for a fuel purchase. The electronic
invoice shall contain the same information as an “Invoice.” Commonly,
a series of electronic invoices will be printed in a periodic customer statement.
(8) “Electronic signature”
shall have the same meaning and requirements as defined in ORS 84.004(8)
(9) “Emblem”
means the document issued by the Department, which allows the licensed user to purchase
fuel with the Oregon use fuel tax deferred. Emblems are issued for a specific vehicle
and renewed annually.
(10) “Fleet Fueling”
means a mobile retail fueling operation where the licensed seller places fuel into
the tank of a vehicle or equipment at their customer’s locations. Any sales
made without collecting Oregon tax are subject to invoice requirements in ORS 319.671.
(11) “Handler”
or “handler of fuel for use in a motor vehicle” includes but is not
limited to bulk distributors, producers, sellers, users, transporters, and any other
person who purchases, sells, trades, stores, produces, or transports fuel.
(12) “Incidentally
Operated” means the vehicle or equipment is primarily designed to be operated
off road but is allowed up to five (5) miles on-road travel starting from the location
the vehicle was garaged or parked the previous day. If in excess of these miles,
all on-road use is subject to tax.
(13) “Invoice”
means the receipt or other record of an individual transaction, completed at the
time of the sale. An invoice shall contain the information required in OAR 735-176-0170
(6).
(14) “Non-retail Facility,”
as defined in ORS 319.520(11), means an unattended facility where use fuels are
dispensed through a cardlock card activated fuel dispensing device.
(15) “ODOT Fuels Tax
Group” or “Department” means the organizational unit within the
Oregon Department of Transportation or its agent that is primarily charged by the
Department with the administration of ORS 319.010 through 319.880 on behalf of the
state of Oregon.
(16) “Register”
means to be entered into the Department’s registry. Bulk distributors that
are not otherwise qualified as a use fuel seller (as defined by ORS 319.520(13)
and 319.621), or a licensed motor vehicle fuel dealer (as defined by 319.010(6)
and 319.030) and therefore not licensed with the state of Oregon, will be required
to register. By registering with the state of Oregon, the bulk distributor receives
a registry number, which enables the state of Oregon to track and record bulk sales
information.
(17) “Retail Facility”
means a fueling operation that does not qualify as a non-retail facility. Unattended
facilities that are not capable of generating an electronic invoice are considered
retail facilities.
(18) “Simplified User
Reporting” means a use fuel user who opts to pay tax on all gallons purchased
on a monthly basis at bulk facilities, retail facilities, and non-retail facilities
and report those purchases in a format determined by the Department.
(19) “Special Use Fuel
Permit” is an emblem issued by the Department to a specific vehicle powered
by natural gas or propane. The permit is renewed annually and allows the permit
holder to pay an annual fee rather than the per-gallon use fuel tax.
(20) “Third Party Payer”
means a bulk facility that reports all bulk fuel sales, collects and remits the
applicable tax to the state of Oregon on behalf of use fuel users, or a licensed
use fuel seller who is collecting and remitting the applicable tax to the state
of Oregon on behalf of use fuel users as part of its operation.
(21) “User” or
“User of Fuel in a Motor Vehicle” as used in ORS 319.510 through 319.880
and OAR chapter 735, division 176, means a person as defined in ORS 319.520(12)
who uses fuel in a motor vehicle as defined in 319.520(15). “User” or
“user of fuel in a motor vehicle” includes, but is not limited to, a
lessor who allows a motor vehicle to operate on the highways of this state and allows
the lessee to use fuel in that motor vehicle.
Stat. Auth.: ORS 184.616, 184.619 &
319.510 - 319.880
Stats. Implemented: ORS 319.510
- 319.880
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0110
Use Fuel Record Keeping Requirements
(1) Record Requirements. Every handler
of fuel for use in a motor vehicle shall maintain and keep records for a period
of three years from the due date of the report or three years from the date the
report is filed, whichever is later, as follows:
(a) A purchase journal or
other record of fuel received supported by purchase invoices and bills of lading
showing delivery location for all use fuel purchases. When the fuel is B20 or greater
derived from used cooking oil: the bill of lading, invoice, or delivery ticket shall
include certification from the supplier that the biodiesel is derived from 100%
used cooking oil as well as the location of the refinery where the biodiesel was
manufactured
(b) A record of all bulk
fuel sales, use, and transfers;
(c) A physical inventory
of bulk fuel storage shall be recorded at the end of business on the last day of
each calendar month and preserved for audit purposes. Tank inventory readings may
be electronic tank monitor readings or physical stick inventory readings;
(d) Source documents for
tank inventory readings for audit purposes (whether manual or electronic readings);
(e) Copies of customer invoices,
whether paper or electronic, shall be kept for audit purposes. If tax is collected
from use fuel users at the time of sale, fuel invoices must clearly show the amount
of use fuel tax collected.
(f) Invoices upon which tax
collections are recorded shall be kept separate from other sales invoices;
(2) Required records will
be summarized by calendar month and must be centralized in the state of Oregon at
the office where the periodic tax audit is to be made.
(3) The Department may determine,
at its sole discretion, when the auditor for the state must travel outside the state
of Oregon to examine the licensee’s records. At any time such travel is determined
necessary the licensee must reimburse the state for all travel expenses incurred,
including transportation, meals and lodging costs.
(4) Fuel handlers must make
documentation readily available to the Department upon request by the Department
by the date prescribed by the Department.
(5) Fuel handlers who fail
to provide records for review are subject to assessment based on “best available
information.”
(6) Additional recordkeeping
requirements for use fuel sellers:
(a) Pump meter readings shall
be taken at the end of business on the last day of the month and retained for audit
purposes. Physical pump meter readings (or non-resettable electronic readings) will
be taken for all dispensers of use fuel operated by the seller at a location;
(b) Copies of customer invoices,
whether paper or electronic, shall be kept for audit purposes. If tax is collected
from use fuel users at the time of sale, fuel invoices must clearly show the amount
of use fuel tax collected;
(c) Non-retail sellers will
also retain fuel network statements to support customer invoices and fuel handled;
(d) Copies of exemption certificates
that include a list of vehicles and the cards assigned to each vehicle if ex-tax
cardlock cards are issued.
(e) Sellers who fail to provide
records for review are subject to assessment based on “best available information”
collection action, and possible license suspension and revocation.
(7) Additional record keeping
requirements for use fuel users:
(a) If Oregon tax is included
in the purchase price, a copy of the invoice, clearly showing the amount of tax
collected, must be provided with the user report to receive tax-paid fuel credit;
(b) A record of the number
of miles traveled over Oregon highways. In the absence of affirmative evidence all
fuel will be presumed to have been used in a taxable manner;
(c) If fuel is stored in
bulk, a physical inventory shall be taken at the end of each month and preserved
for audit purposes. Consumption records will be retained by the user and made available
to the Department upon request by the Department;
(d) A user with one use fuel
vehicle with a light weight of less than 8,000 pounds, as verified by a method approved
by the Department, may, in lieu of the requirements detailed in section (1)(a) through
(7)(c) of this rule, keep an accurate record of Oregon miles driven. Tax for this
user is calculated using a reasonable mile per gallon (as determined by the Department
using industry standards) applied to Oregon miles traveled.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.510
- 319.990
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0120
Use Fuel Seller Licensing Requirements
(1) Seller License. Persons who sell
fuel for use in a motor vehicle are required to be licensed. They must maintain
records of fuel manufactured, purchased, handled, and distributed or sold and must
preserve them for three years from the reporting due date or the date the report
was filed, whichever is later. Persons who do not sell fuel for use in a motor vehicle
are not required to be licensed. They must, however, maintain records of fuel manufactured,
purchased, handled, and distributed or sold and include that information with the
Motor Vehicle Fuel Dealer report or Registered Bulk Distributor report.
(2) Bond amounts for licensed
sellers will be two times the estimated monthly tax liability as determined by the
Department.
(a) For new licensees, the
bond amount shall be determined by volume sold by prior owner or similar sellers
in the area.
(b) In the event there is
no reliable data on which to estimate the bond, the seller will post $1,000 bond
or deposit, subject to annual review and adjustment.
(3) If a deposit other than
cash is made, the bond or security on deposit shall have the Department of Transportation
listed as an owner.
Stat. Auth.: ORS 184.616, 184.619 &
319.510 - 319.880
Stats. Implemented: ORS 319.621,
319.665 & 319.697
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0130
Bulk Distributor Registration Requirements
Every person producing, manufacturing,
importing, distributing, storing, transporting, or otherwise handling fuel must
be registered. They must maintain records of fuel produced, imported, distributed,
transported, or otherwise handled for three years from the reporting due date, or
the date the report was filed, whichever is later.
Stat. Auth.: ORS 184.616, 184.619 &
319.510 - 319.880
Stats. Implemented: ORS 319.621,
319.665 & 319.697
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0140
Use Fuel User Licensing Requirements
(1) License Requirements.
(a) Persons who use fuel
as defined in ORS 319.520(12) in a motor vehicle, except those excluded in 319.550
and 319.885, must first apply for and obtain a user license and a vehicle emblem
for each vehicle;
(b) User licenses are subject
to bonding as specified in subsection (4) of this section;
(c) Emblems are issued for
specific vehicles on an annual basis; and
(d) ORS 319.611(1) imposes
a penalty of 25 percent of the tax for using fuel without first obtaining a valid
license and vehicle emblem.
(2) Other users required
to be licensed and report vehicle operations and fuel usage include:
(a) Users of vehicles over
26,000 Gross Vehicle Weight Rating when any of the miles operated in Oregon are
not subject to weight mile tax;
(b) Oregon state agencies;
(c) Oregon counties;
(d) Oregon cities;
(e) Rural fire protection
districts;
(f) School districts;
(g) Special districts; and
(h) Other users as notified
by the Department.
(3) Nonresidents in this
state a total of 30 days or less during the calendar year are not required to be
licensed if, for all fuel used in a motor vehicle in this state, the nonresident
pays to a seller, at the time of the sale, the tax provided in ORS 319.530.
(4) Bond amounts are limited
as shown in ORS 319.570. Bonds for licensed users will be two times the estimated
monthly tax liability as determined by the Department. The estimated tax liability
is not reduced by tax-paid fuel purchases.
(a) In the event there is
no reliable data on which to estimate the bond, the user will post $100 bond or
deposit, subject to annual review and adjustment.
(b) If a deposit other than
cash is made, the bond or security on deposit shall have the Department of Transportation
listed as an owner.
(5) An emblem is required
to be displayed on the vehicle for which it was issued when purchasing fuel for
the vehicle. An emblem is considered to be displayed in a conspicuous place if it
is readily accessible and presented to the station attendant at the time of fueling,
or the cardlock card issuer upon request and at the time the account is set up,
or when requested by the supplier.
(6) The Department may refuse
to cancel a user license when such cancellation is requested by the user, if the
user is required to report. Effective cancellation dates may be set by the Department
if the user does not return emblems. If emblem(s) is not returned at the request
of the Department, then the user shall file reports throughout the year in which
the emblem will expire.
(7) Responsibilities of the
User:
(a) List all use fuel vehicles
on application and user report;
(b) Retain emblem with the
vehicle;
(c) Retain fueling and mileage
records by vehicle;
(d) Notify the Department
of any changes in vehicles;
(e) Cancel license in writing
if the license is no longer needed; and
(f) Return emblems when license
is canceled or revoked.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.550
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0150
Special Use Fuel Permit Requirements
Owners of vehicles powered by natural
gas or propane may purchase an annual permit in lieu of paying the per-gallon use
fuel tax. Each permit is issued to a specific vehicle and is not transferrable.
(1) Persons who operate a
qualifying vehicle must first apply for and obtain a special user permit and a vehicle
emblem for each vehicle;
(2) Application for the permit
and payment of fees will be made electronically, through a website established for
the Department
(3) Emblems are issued for
a specific vehicle on an annual basis;
(4) Permit fees are based
on vehicle weight as indicated on the registration; and
(5) Permit fees may be prorated
as follows, for permit applications received between:
(a) Jan 1 to Mar 31 —
100%.
(b) Apr 1 to June 30 —
75%.
(c) July 1 to Sept 30 —
50%.
(d) Oct 1 to Dec 31 —
25%.
(e) There is no refund for
permits cancelled before the end of the calendar year.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.550
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0160
Use Fuel Reporting Requirements
(1) Fuel is presumed to be used in a
taxable manner when sold. Failure to account for non-taxed sales with accurate documentation
completed at the time of sale, may result in the assessment of tax on the gallons
of fuel sold, along with penalty and interest on the tax that has not been reported
and paid.
(2) Every use fuel handler
must prepare a report that completely summarizes use fuel gallons sold, distributed,
or used during the report period. Schedules are required for each type of operation
and fuel sold. Total taxable gallons from each schedule will be carried to the appropriate
line on the front page of the report for computation of the tax, penalty and interest
as applicable.
(3) Bulk fuel sales or use,
both tax paid and tax exempt, must be reported on the forms prescribed by the Department
and submitted not later than the 20th day of the succeeding calendar month.
(4) “To report”
or “be reported” means a complete report, with all required schedules
on forms prescribed by the Department and full remittance of tax must be received
by the Department or its designated agent, not later than the 20th of the succeeding
calendar month.
(a) All reports and required
schedules with 100 or more transactions shall be filed electronically in a manner
prescribed by the Department. Once a licensee or registrant is required to file
their reports electronically, all subsequent reports shall be filed electronically
regardless of the number of transactions.
(b) Received is the date
the report is physically received by the Department or its designated agent.
(c) When the due date falls
on a Saturday, a Sunday, or any recognized state or federal holiday, the report
and payment must be received by the Department on or before the next business day.
(d) Computerized report data
may be substituted for schedule detail when the dealer has less than 100 transactions
and the format is compatible with the prescribed forms.
(e) If an electronic transaction
requires the payment of taxes or fees, payment of those taxes or fees within the
electronic transaction shall be:
(A) Made through an Automated
Clearing House (ACH) debit or credit transaction;
(B) Made in US funds.
(5) A licensee or registrant
will be deemed to have failed to file a report when:
(a) The report has not been
filed by the next report due date if the handler is a monthly filer; or within 45
days of the due date if the licensee is a quarterly or annual filer; or
(b) The Department has requested
that a report be filed by a specified date and the report is not received by the
specified date.
(6) An agent may sign on
an individual’s behalf when a valid power of attorney or guardianship is in
effect.
(7) Licensed use fuel sellers
and use fuel users may qualify to report quarterly or annually when authorized under
ORS 319.692.
(a) Bulk distributors will
file monthly reports
(b) A credit of 4% of the
tax is available to a licensed use fuel seller based on the seller’s tax liability,
which is supported by schedules showing the fuel was placed into the fuel tank of
motor vehicles.
(A) The 4% credit of tax
is not applicable to bulk fuel sales.
(B) The 4% credit of tax
is not applicable when the seller tax report and/or payment are received after the
due date.
(8) Additional reporting
requirements for use fuel users:
(a) A licensed user will
pay tax on all fuel unless vehicle operation information is provided.
(b) Users who have paid any
Oregon tax on fuel purchased from Oregon sellers of fuel must detail such purchases
in the fuel schedule of the tax report form and treat such transactions as credits
against their total tax liability.
(A) Payment of tax to third
party payer does not relieve the user of tax liability or reporting requirements.
If the third party payer does not remit the tax, or the Department is unable to
verify the tax was paid, an assessment of tax, penalty and interest will be sent
to the user.
(B) Credit may be taken
for Oregon use fuel tax paid on gallons purchased, up to the amount of gallons used
in Oregon during the report period.
(C) Users who do not provide
vehicle specific mileage and consumption records are not eligible for refunds or
credits of tax paid on fuel used in a non-taxable manner.
(c) Some fuel may be exempt
from Oregon tax when vehicle operations are provided:
(A) Miles reported to Motor
Carrier Transportation Division on which weight-mile taxes were paid.
(B) Miles driven outside
Oregon when mileage records are retained.
(C) Miles driven on private
property when mileage records are retained.
(D) For qualifying school
districts and education service districts, bus miles driven to transport students,
and in support of student transportation, such as driver training, fueling, maintenance,
and similar activities as approved by the Department are tax refundable. Bus charter
miles driven and school district vehicles not used to transport students are subject
to tax.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.550
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0170
Collecting Tax on Sales or Use;
Invoice Requirement
(1) Suppliers may collect tax on deliveries
into the bulk tank of an end user at the customer’s request, provided the
supplier is registered as a third party payer or is a licensed use fuel seller.
(a) Collection of tax at
a customer’s request does not relieve the customer of the need to be licensed
and report.
(b) Taxes collected by a
third party payer must be reported and remitted to the Department, in accordance
with OAR 735-176-0160, on a monthly basis in a format determined by the Department.
(c) The 4% credit available
to use fuel sellers is not applicable to bulk fuel sales.
(2) Persons who sell fuel
and place it into the fuel tank of motor vehicles, except for sellers at non-retail
facilities as defined in ORS 319.520(11), shall collect the Oregon tax at the time
of sale except for sales into:
(a) Vehicles displaying a
valid ODOT Motor Carrier Transportation Division weight receipt or pass;
(b) Vehicles displaying a
valid use fuel vehicle emblem issued by the Department;
(c) Vehicles displaying a
United States government license plate or the registration plate for state or local
government owned vehicle issued registration pursuant to ORS 805.040 or a school
bus or school activity vehicle issued registration pursuant to ORS 805.050;
(d) Farm tractors or other
agricultural implements only incidentally operated on the highway as defined in
ORS 319.520(10); and
(e) Cans, barrels, or containers
other than the fuel supply tank of a motor vehicle.
(f) Vehicles displaying a
valid Special Use Fuel Permit when purchasing natural gas or propane.
(3) A seller, as defined
by ORS 319.520(13)(b), who sells fuel at non-retail facilities in Oregon shall collect
the tax from a purchaser whose account is owned by the seller. The non-retail seller
shall include the transactions in the taxable sales report unless the seller retains
written certification signed by the purchaser on forms provided by the Department
that the use of the fuel is tax deferred or exempt from the tax imposed under 319.530.
(a) “Certifies to the
Seller” means the customer completes and signs the “Certification of
Oregon Use Fuel Exempt Tax Status” form as provided by the Department. The
seller is responsible for collecting and remitting the tax until the signed and
dated exemption certificate is received from the customer. The form will contain:
(A) The name and address
of the seller;
(B The name, address, account
number and signature of the purchaser;
(C) The reason that the use
fuel tax should not be collected by the seller;
(D) A list of vehicles and
equipment;
(E) A statement from the
purchaser that for all use fuel purchased at Oregon non-retail facilities on account
with the seller, such fuel will be used only for purposes that are tax deferred
or exempt from use fuel taxation under ORS 319.510 through 319.880.
(b) A seller may not sell
use fuel without the tax until a valid exemption certificate is completed, signed
and returned to the seller; and
(c) The customer provides
the identifying information for each cardlock card to qualify the tax deferred status.
The card issuer shall list the card number assigned to the vehicle or equipment
when qualified for ex-tax purchases.
(4) Sellers, as defined by
ORS 319.520(13), who do not operate non-retail facilities in Oregon but who own
the accounts of purchasers who purchase fuel at Oregon non-retail facilities, must
be licensed with the Department and are required to comply with all of the provisions
of 319.510 through 319.880 and this rule.
(5) A seller, as defined
by ORS 319.520(13), who sells at non-retail facilities in Oregon and does not collect
the tax from a purchaser whose account is not owned by the seller, must provide,
upon request of the Department, the purchaser’s account number and the name
and address of the non-retail seller who owns the account.
(6) Use fuel invoices shall
contain:
(a) The seller’s name
and address,
(b) The purchaser’s
name and address,
(c) The full date of sale,
(d) The fuel type and number
of gallons purchased,
(e) The amount of Oregon
fuel tax included in the purchase price, or
(f) If the Oregon fuel tax
is not included, the reason for the ex-tax sale:
(A) Motor Carrier Weight
Receipt or pass number.
(B) Use Fuel User Emblem
number.
(C) US Government plate number,
State or local government agency plate number.
(D) Description of the vehicle
or equipment if unlicensed.
(E) Description of the container
if not placed into a fuel supply tank of a vehicle or equipment.
(F) Special User Permit number
when purchasing propane or natural gas.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.550
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0180
Tax Forgiveness of Biodiesel and
Biodiesel Blends Made From Used Cooking Oil
(1) To be eligible for the tax forgiveness
in ORS 319.530 (5), biodiesel must meet the requirements of ASTM D 6751 and be derived
from 100% used cooking oil.
(2) To be eligible for the
tax forgiveness in ORS 319.530 (5), petroleum-based diesel must be blended with
a minimum 20 percent biodiesel, which meets the requirements of ASTM D 6751, and
is derived from 100% used cooking oil.
(3) To be eligible for the
tax forgiveness in ORS 319.530 (5), the fuel must be sold at a retail location,
and must be placed in the fuel tank of a motor vehicle. Fleet fueling, bulk sales,
and cardlock sales are not eligible.
(4) To certify the biodiesel
is derived from 100% used cooking oil, the bill of lading for the biodiesel shall
include certification from the supplier that the biodiesel is derived from 100%
used cooking oil as well as the location of the refinery where the biodiesel was
manufactured.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.530
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0190
Requesting Reassessment; Use Fuel
Waiver of Late Payment Penalties
(1) If a user, seller, or bulk distributor
disagrees with an action of the Department, they may request reassessment of the
determination in writing within 30 days of the date of the notice. Notice types
with appeal rights include:
(a) Denial or suspension
of license.
(b) Adjustments to use fuel
user or seller tax reports.
(c) Assessment of tax based
on available information.
(2) If the Department and
the user or seller are not able to resolve the issue through the internal review
process, the user or seller may request a hearing.
(a) The hearing shall be
a contested case hearing under the provisions of ORS Chapter 183.
(b) The licensee must request
a hearing in writing before the Notice of Assessment becomes final.
(3) ORS 319.694(2) allows
the Department to waive penalties for late payment of use fuel tax.
(4) An entity or a person
may submit a written request for waiver of late payment penalties to the Department.
(5) The penalty under ORS
319.694 may be waived if the taxpayer shows reasonable cause for delay in filing
the report or paying the tax.
(a) A taxpayer who wishes
to apply for waiver of the penalty must explain the facts and circumstances that
reasonably led to the failure to file a report or pay tax on time. The written statement
will contain a declaration that it is made under penalty of perjury. The statement
should be filed with the report or filed with the Department within 30 days of the
Notice of Assessment.
(b) Circumstances that may
constitute reasonable cause include, but are not limited to, the following:
(A) War, riot, rebellion,
acts of God or other disaster which rendered it impossible to make the filing or
payment or which made delay unavoidable in making the filing or payment; or
(B) Acts or omissions by
a third party which were beyond the control of the person making the filing or payment
and which made delay unavoidable in making the filing or payment; or
(C) The person took in good
faith all steps and precautions reasonably necessary to ensure the timeliness of
the filing or payment; and
(D) Any other criteria the
Department may find to be informative and appropriate.
(c) The calculation of the
penalty will be shown on all adjustments. If the person requests a waiver and it
is granted, the amount waived will also be shown.
(d) The following reasons
are not acceptable for granting penalty waiver:
(A) Employee incompetence
or inexperience;
(B) Employee turnover;
(C) Misunderstanding or ignorance
of law;
(D) Computer failure or error
that is not the result of a natural disaster;
(E) Changeover to new accounting
processes, software or upgrades;
(F) Change in company operations;
or
(G) Reliance on, or errors
made by third party payers, suppliers or customers.
(6) A taxpayer filing tax
reports through the Department’s electronic system will not be charged penalty
or interest if:
(a) The licensee attempts
to submit a timely filed tax report
(b) The Department’s
electronic filing system is not available to receive the transmission
(c) The licensee immediately
notifies the Department that the electronic filing system is not available to receive
their transmission.
(d) The licensee submits
the tax report and remits the balance due on the first business day the system is
available to receive the transmission.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.530
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0200
Use Fuel Tax Credit of Interest
on Tax Overpayments
(1) The Department may allow interest
credit for overpayments of use fuel tax up to the amount of interest paid for underpayments
of tax during any given audit period.
(2) For purpose of ORS 319.694(3)(b)
and this rule, “any given audit period” means the time period from the
last day of the immediate prior audit period up to the present. If there is no prior
audit, “any given audit period” shall mean a period not to exceed three
years prior to the current date.
(3) Any interest payments
made on underpayments of tax from a prior audit period shall not be:
(a) Considered as interest
on overpayments in the current audit period; or
(b) Subject to credit under
ORS 319.694(3)(b).
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.550
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15
735-176-0210
Refunds and Credits of Use Fuel
Tax
(1) Refunds of use fuel tax are allowed
in the following circumstances:
(a) Fuel is used in another
state and is also taxed by that state (proof of payment of tax to other state is
required);
(b) Fuel is used on private
property in a motor vehicle (mileage records are required);
(c) Fuel is used in a qualifying
government vehicle (federal, state, county, city);
(d) Fuel is used in qualifying
student transportation;
(e) Fuel is used by a rural
fire district;
(f) Fuel is used by a qualifying
special district;
(g) Fuel used in vehicles
subject to the road usage charge when that fee was paid and the use fuel tax was
also charged on the fuel; and
(h) Refunds are limited to
fuel purchased within 15 months of the date of the claim; application for refund
is made on the form prescribed by the Department.
(2) Special Use Fuel Permit
holders who also pay the Oregon tax on propane or natural gas may request a refund
of the tax paid when:
(a) Fuel is used in a vehicle
to which a special permit is issued, during the time the permit is valid.
(b) The Oregon fuel tax is
shown on the receipt or invoice and remitted by the supplier.
(c) The Oregon fuel tax to
be refunded is $25.00 or more.
(3) Use fuel users who pay
their taxes through a third party payer or opt for simplified reporting are not
eligible for refunds or credits.
(4) An erroneous collection
occurs when the seller has the information to correctly and completely document
a tax deferred non-retail sale at the time of the transaction, but the seller collected
the tax in error. Erroneous collection claims are filed with the fuel supplier/seller
and must be submitted as an amended tax report.
Stat. Auth.: ORS 184.616, 184.619, 319.510
- 319.880
Stats. Implemented: ORS 319.550
- 319.690
Hist.: DMV 13-2014, f. 11-25-14,
cert. ef. 7-1-15

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