City of Portland Business Tax filing requirements for 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. For a more detailed description about these projects you can visit the Portland Bureau of Transportation's Background and Projects.
This new tax is imposed in addition to the 2.6% business tax. This is a separate tax from the City of Portland Gas 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.
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.
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.
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.