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Heavy Vehicle Use Tax

Information on the Heavy Vehicle Use Tax.

On May 11, 2016 City Council approved a new four-year tax, establishing a Heavy Vehicle Use Tax (HVT).  The Heavy Vehicle Use Tax applies to companies that pay the Oregon Weight-Mile Tax for any driving on Portland streets.  Revenues from this tax will help pay for the upkeep of roads and safety projects. This new tax is imposed in addition to the 2.6% business tax.

In May 2020, the voters of Portland passed a four-year extension of this tax and a rate increase.

The Heavy Vehicle Tax is imposed on taxpayers who operate one or more heavy vehicles on streets owned or maintained by the City of Portland. For tax years 2016 through 2019, the tax rate is 2.8%, and for tax years 2020 through 2023, the tax rate is 3% of the total Oregon Weight-Mile Tax calculated for all periods within the tax year. The minimum Heavy Vehicle Tax due for a tax year is $100.

This new tax takes effect starting with 2016 tax year.

City of Portland Business License Law (PCC) 7.02.500 D Tax Rate.

Heavy Vehicle Use Tax General Information

To ensure that local transportation funding is collected in a way that considers all types of vehicles that use the transportation system, City Council passed the Heavy Vehicle Tax.  This is in addition to the motor fuel tax on sales within city limits.  Heavy Vehicle Tax or HVT is a fee assessed annually on heavy vehicles operating on streets owned or maintained by the City of Portland.

When did City Council approve the Heavy Vehicle Use Tax?

City Council approved the Heavy Vehicle Use Tax Ordinance on May 11, 2016.

Is this the same as the Gas Tax?

No, the Heavy Vehicle Tax is in addition to the City of Portland Gas Tax. 

How much revenue will be generated by the Heavy Vehicle Use Tax?

The estimated revenue to be generated from the Heavy Vehicle Tax is $2.5 million per year or $10 million over four years.

How will the revenue be spent?

Per City Council Ordinance 187743, the funds are to be allocated for Street Repair/Maintenance (56% of funds) and Traffic Safety (44% of funds). For a more detailed description about these projects you can visit the Portland Bureau of Transportation's Background and Projects.

What is the Heavy Vehicle Use Tax rate?

For tax years 2016 through 2019, the tax rate is 2.8%. For tax years 2020 through 2023, the tax rate is 3%.

How is the Heavy Vehicle Use Tax calculated?

For tax years 2016 through 2019, the Heavy Vehicle Use Tax is 2.8% of the total Oregon Weight-Mile Tax calculated for all periods within the tax year. For tax years 2020 through 2023, the Heavy Vehicle Use Tax is 3% of the total Oregon Weight-Mile Tax calculated for all periods within the tax year. The minimum amount of Heavy Vehicle Tax due for a tax year is $100.

To what tax years does the Heavy Vehicle Use Tax apply?

It is applicable to tax years 2016 through 2023.

Who is required to pay?

Businesses that operate one or more heavy vehicles on streets owned or maintained by the City of Portland.

What is considered a “Heavy Vehicle”?

For purposes of this tax, a heavy vehicle is any vehicle that is subject to the Oregon Weight-Mile Tax.

How do I know which streets are “owned or maintained by the City of Portland”?

These generally do not include the Interstate and State-Owned Highway System. For detailed information, go to the Heavy Vehicle Tax map.

Will I get a taxation summary with the amount owed?

No, when you file your Portland Business Tax Return you will also complete the Heavy Vehicle Tax Schedule. Using this schedule, you will calculate the amount due.

How do I file the Heavy Vehicle Use Tax Schedule?

The HVT schedule will need to be filed along with your annual Portland Business Tax Return.