Why is the Oregon weight-distance tax so high?

Discussion in 'Trucker Taxes and Truck Financing' started by PE_T, Jan 3, 2020.

  1. Long FLD

    Long FLD Road Train Member

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    How about back before the Loves opened in Ontario and the Pilot would have their prices set the same as Idaho? And people would still be in there buying fuel.
     
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  3. PE_T

    PE_T Road Train Member

    I was running some numbers, and it turns out OR’s “road tax” is really expensive. These are my numbers. Are they correct?

    OR
    100 miles X .2150 tax = $21.50

    CA
    (100 miles / 7 mpg) X .76 tax = $10.86

    I want to run the numbers for NM, KY, and NY too as I suspect theirs may also be as high as OR.
     
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  5. Long FLD

    Long FLD Road Train Member

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    Yes, OR is expensive. That’s why you need to figure in the OR into the rate. When I was running out there a lot with my own truck at the time I think it was .18 a mile and we’d either bump our rate up or pad our loaded miles to cover most of the OR miles.
     
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  6. Scooter Jones

    Scooter Jones Road Train Member

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    Correct. Oregon is expensive to run through. But we do have some pretty nice roads though. And Kate Brown as Governor :)
     
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  7. Scooter Jones

    Scooter Jones Road Train Member

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    However, in order to get a true comparison to say CA, you would need to calculate it accordingly.

    100 gallons in Oregon at 2.38 is $238

    100 gallons in Cali is roughly $345

    0.76 tax is $76 which takes is down to $269

    Thus, you'd save $31 on 100 gallons fueling in Oregon and just paying Cali their tax through IFTA.
     
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  8. PE_T

    PE_T Road Train Member

    Well, I’m not sure what to say. You’re missing the OR weight-distance tax, and we need to know the actual fuel prices. I’ll make the adjustments to my prior example above by adding the savings for having access to OR’s cheaper fuel.

    OR
    100 miles X .2150 tax = $21.50
    (100 miles / 7 mpg) X 0.271 (see “details” below) = $3.87 (savings)
    $21.50 - $3.87 = $17.63

    Conclusion: Road tax is still higher in OR compared to CA when accounting for access to cheaper fuel in OR and if traveling only in OR and CA. There are other factors that can counter this higher OR road tax such as good paying freight for traveling to OR.

    CA
    (100 miles / 7 mpg) X .76 tax = $10.86

    Details:

    2.358 = Cheapest NASTC pre-tax fuel stop today in OR and located north of Portland.
    2.629 = Second cheapest NASTC pre-IFTA fuel stop today in north of CA (above Fresno) and located north of Fresno. Actual cheapest is 2.615 in Lodi. Cheapest below Fresno is 2.586 in Lost Hills.

    2.629 - 2.358 = 0.271

    So, driving to OR and fueling there will allow you an average fuel discount of 0.271 per gallon (road tax excluded) if one travels between OR and CA regularly.
     
    Last edited: Jan 5, 2020
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  9. Espressolane

    Espressolane Road Train Member

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    When it all comes down to the numbers at the end of the day, it works out very close. IFTA is mileage based as well, so that is not unlike Oregon or New Mexico using a ton/mileage rate.

    Also, no sales taxes in Oregon, in some areas of california, that can hit ten cents on the dollar.
     
    Last edited: Jan 5, 2020
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  10. BryE

    BryE Light Load Member

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    DAVE_IN_AZ gets it. You will pay Oregon the mileage rate regardless of where you buy fuel. Same with IFTA in other states. However with IFTA you only pay the ridiculous California tax on fuel you actually burn there. So the best place to buy fuel is where it is cheapest after subtracting whatever tax is included at the pump.
    I get fuel prices daily from the company I lease to. It tells us our cost after discounts for the entire US. Sometimes after deducting the tax it is cheaper to buy fuel in Washington than Oregon. Then what you pay in tax at the pump is an IFTA credit. But it changes all the time so you have to pay attention. North and South Dakota are usually much more expensive on the west side than the east. So fuel in Fargo not Beach. Just an example of having to stay on top of it.
     
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  11. Scooter Jones

    Scooter Jones Road Train Member

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    It's really not as complicated as you're making it.

    If you buy fuel in Oregon and burn it in CA, you're not paying Oregon's weight mileage tax in CA.

    Bottom line again is if you have decent discounts in both States, you will save a few bucks buying the fuel in Oregon, burning it in CA and paying the IFTA portion (fuel tax) for gallons (0.76) you would have used on their roads.
     
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  12. x1Heavy

    x1Heavy Road Train Member

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    My head hurts. =)
     
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  13. 51.50

    51.50 Heavy Load Member

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    l was based in Oregon. In 2009 it was 14 cpm for all miles in the state. It was one of the perks of Qualcomm that mileage for each state was tracked/reported. Much better than having to memorize the mileage when crossing a border and write it down later. Also if you have an Oregon PUC base plate, you are exempt from paying fuel tax at the pump (in Oregon)
     
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