2018 Oregon Vehicle Privilege Tax

January 3rd, 2018 by

The 2017 Oregon Legislature passes House Bill 2017, which included two new vehicle taxes. The vehicle privilege tax is a tax on selling new vehicles in Oregon. The vehicle use tax applies to Oregon residents and businesses that purchase vehicles outside of Oregon. Starting January 1st, 2018, 0.5 of 1 percent will be due on the retail price of any new taxable vehicles.

Leased vehicles

The privilege and use taxes apply to sales of vehicles to lessors. The retail sales price is the amount paid by the lessor to the dealer.
What is subject to the vehicle privilege or use tax?

  • All vehicles with fewer than 7,500 miles, weighing less than 26,000 pounds and that haven’t been titled in Oregon are subject to the vehicle privilege and use taxes.

What isn’t subject to the vehicle privilege or use tax?

  • Vehicle sales to purchasers who aren’t residents of Oregon where the vehicle will be primarily used outside of Oregon.
  • Sales of vehicles that will be used or stored outside of Oregon, or to a business where the primary use will be outside of Oregon
  • Sales of vehicles at an event of fewer than seven consecutive days for which the public is charged admission and where vehicles are sold at auction
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