What Is an Oregon Highway Use Tax Bond?
Oregon Highway Use Tax Bonds are required by the Oregon Department of Transportation Motor Carrier Transportation Division for motor carriers enrolling vehicles in the state's weight mile tax program. The bond guarantees payment of fees, taxes, charges, penalties, and interest due under ORS 825 and 818.225.
Who needs this bond
If you operate a commercial vehicle with a gross weight over 26,000 pounds in Oregon, or if you operate a for-hire vehicle weighing less than 26,000 pounds, you must post this bond when enrolling in the state's weight mile tax program.
Motor carriers with a Dun & Bradstreet rating of 3A2 or higher may be exempt from the bond requirement.
Bond requirements for new carriers
New motor carriers (those who have not held a permit or certificate of authority in Oregon or have not operated in the state for 12 or more months in the most recent 36-month period) must post a bond in the following amounts:
- $2,000 for 1 vehicle
- $2,000 plus $375 for each additional vehicle for 2 to 5 vehicles
- $2,000 plus $250 for each additional vehicle for 6 to 10 vehicles
- $2,000 plus $125 for each additional vehicle for more than 10 vehicles
- Maximum deposit required: $10,000
What the bond covers
Oregon highway use taxes are based on the number of miles traveled in Oregon and the weight of the vehicle. The taxes help pay for highway construction, maintenance, and repairs.
If you fail to pay the required taxes, the state may file a claim against your bond. The surety company will investigate, and if valid, you will need to pay the taxes. If you do not, the surety pays the state and then seeks reimbursement from you.
Compliance requirements
The bond also mandates compliance with all rules and regulations under Oregon Revised Statutes Chapters 825 and 826, which govern the safety of goods and passengers carried on enrolled vehicles.
If you or your business needs help in obtaining a surety bond or commercial insurance give us a call!