Why is the Oregon weight-distance tax so high?

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

  1. PE_T

    PE_T Road Train Member

    Yeah, I do insert my license plate at the pumps in OR. Isn’t there another state that has a similar fuel tax exemption question at the pumps? Is it IN?
     
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  3. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    No just Oregon.

    Indiana used to REALLY put it in your ###. They collected no IFTA, and still had huge fuel prices.

    Indiana is on the IFTA now.
     
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  4. spyder7723

    spyder7723 Road Train Member

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    Not accurate. Indiana has been part of ifta as long as I remember. However they also had two additional taxes: 1 was sales tax, which you needed a valid mc # to be exempted from. 2: they were one of the surcharge states.
     
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  5. PE_T

    PE_T Road Train Member

    So to clear up this confusion. OR doesn’t participate in IFTA, but instead gets their money through the weight-distance tax, right? I suppose that explains why their road tax “looks” higher than NM, KY, and NY. It seems like these other three states may have an overall higher road tax than OR with both their IFTA and weight-distance tax, while for OR is only through the weight-distance tax. Did I get it right?
     
  6. spyder7723

    spyder7723 Road Train Member

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    Yep you got the jist of it. It boils down to similar amount of tax dollars, just a different way of collecting it.
     
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  7. Scooter Jones

    Scooter Jones Road Train Member

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    Btw, they just bumped it to .2150 a mile on January 1st.

    We're also paying for grocery bags now. Saving the planet.

    We're a hip State, don't you know.
     
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  8. PE_T

    PE_T Road Train Member

    I was thinking about what you said about buying enough fuel to cover my OR miles. Are you saying that because it will save money as there is no fuel tax at the pump or for other reason?
     
  9. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    No it's cheaper there for running in Oregon, because they collect no IFTA.

    Usually it's cheaper if you are heading south into the communist state. California's IFTA is like 76 cents a gallon or some outrageous number. They add 10 or 12 percent state tax to the end as well.

    Example -

    My cost of fuel per gallon right now at a TA in Oregon is $2.37 gallon.

    My cost of fuel in the communist state at a TA is $3.39 gallon. The communist state holds $0.76 gallon for IFTA.

    So the actual cost of fuel is $3.39 - $0.76 = $2.63
    OR
    $0.26 more than in Oregon.

    So you're better off fueling in Oregon, and sending IFTA a couple bucks than throwing a fiddy out the window filling in the communist state.
     
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  10. PE_T

    PE_T Road Train Member

    I’ve noticed that OR almost always has very cheap fuel compared to neighboring states. However, just recently I noticed UT and west of WY had cheaper fuel (without the IFTA tax).
     
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  11. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    Utah is typically pretty good. You have to do the math. Sometimes Oregon will bump there's up, and it's cheaper to pay even in the communist state.
     
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