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Diesel Tax Impact Considered
Purchasers “are not considered to be a taxpayers”

With the stated goal of bolstering the Clean Diesel Engine Fund HB 2674 would financially harm both retail businesses and consumers, once the 48-page expected amendment is adopted. The bill has been introduced by Representative Rob Nosse (D-Portland). It would create administrative burdens for businesses and state government. Is the goal of this bill to raise revenue, discourage the use of diesel equipment or to increase the number of state employees? How will the bill affect industry and the consumer?

It proposes a 3% tax on tires. The tax must be recorded on a separate invoice from the sale. The tax on nonroad diesel equipment is 1.5%. The tax on rentals of nonroad equipment is 3.5% and on general diesel equipment 2%. Purchasers “are not considered to be a taxpayers”. It is a tax on those with the privilege of providing the equipment for sale or lease. However, tax on nonroad diesel equipment purchased from out-of-state sellers will be the responsibility of the purchaser. The tax will be reduced by the amount of any tax paid out-of-state sellers but not to an amount below zero. Sales to nonresidents are exempt from this tax. Excess taxes are refunded to purchasers when equipment is surrendered or traded in. The purchaser is burdened with proof for refunds claimed.

Every provider of nonroad diesel equipment must register with the Oregon Department of Revenue and keep records. Enforcement will be through the Circuit Tax Court of Oregon. They have power to subpoena individuals in prosecuting owners and officers of sellers out of compliance. Rules for appealing rulings are established as are punishment including criminal charges. Revenue Department moneys may be held by the Treasurer’s Department. Moneys to reimburse the Treasury Department shall not exceed 5% of monies held in suspense. Moneys from rentals shall be transferred to the counties where the transaction occurs. Moneys in excess of 2% shall go to the Clean Diesel Engine Fund.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

The bill would put Oregon at a competitive disadvantage from our current posture, contributing yet another obstacle to attracting business to our state. Diesel power drives farming, mining, fishing, construction and forestry to name a few industries. Utilities providing water, sewer, electricity and communications run on diesel as does fire protection, emergency services, police and military. This tax would eventually be borne by the consumer and provide no discernable benefit.


--Tom Hammer

Post Date: 2021-03-15 16:41:15Last Update: 2021-03-15 17:01:28



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