Oregon trucking companies sue state over ‘astronomical’ highway taxes
PORTLAND, Ore. (KOIN) – The Oregon Trucking Association and three Oregon trucking companies filed a lawsuit on Tuesday against the State of Oregon, claiming trucks have unconstitutionally overpaid their fair share of highway taxes over several years.
OTA, and Oregon trucking companies Combined Transport, A&M Transport, and Sherman Bros. Trucking, filed the lawsuit in Douglas County against the State of Oregon, Gov. Tina Kotek, the Oregon Department of Transportation, Senate President Rob Wagner and House Speaker Dan Rayfield.
The trucking organizations are asking for an immediate review of weight mile taxes by the state legislature and seek a combined estimated relief of around $925,000.
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OTA — a nonprofit representing over 25,000 trucking companies in the state — argues that Oregon’s constitution requires that the tax rate paid by trucks “is fair and proportionate to the costs incurred for the highway system because of each class of vehicle,” but claims trucking companies have paid more than one-third of all taxes owed by Oregon motorists even though trucks represent 15% of vehicle miles traveled in the state.
The lawsuit claims that for the last six years, heavy-weight trucks have paid “an ever-increasing and disproportionate” share of the State of Oregon’s road revenue.”
The organization furthers that when trucking taxes continue to increase, small trucking businesses have to increase their prices – leading to price increases at stores.
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Citing Oregon law, the complaint says that every two years, the Oregon Department of Administrative Services must conduct a Highway Cost Allocation Study to determine the proportionate share that heavy and light vehicle users should pay. The study is then sent to the state legislature to determine whether adjustments should be made.
The plaintiffs say when there is a fair allocation between heavy and light vehicles, there is an equity ratio near 1.0 between the two classes of vehicles. However, the trucking organizations argue that for the past three study periods, heavy trucks have taken on an increasing share of taxes.
In the complaint, the plaintiffs highlight three of the latest studies, which show that trucking companies have overpaid taxes by 3% in 2019-2021 and about 16% in 2021-2023.
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ODOT estimates for the 2023-2025 study that heavy vehicles will overpay by approximately $193 million per year, according to court documents.
The plaintiffs claim that the 32% overpayment is unconstitutional based on Oregon’s Constitution mandating fair and proportionate treatment of heavy and light vehicles.
In a statement, OTA President and CEO Jana Jarvis said, “For far too long, Oregon trucking companies, the vast majority of which are small, family-owned businesses, have paid far more than their fair share of transportation taxes. By 2025, the trucking industry is expected to have overpaid by half a billion dollars. Trucking companies in Oregon simply cannot sustain paying the highest transportation taxes of any state in the country any longer.”
“Oregonians deserve safe roads, and our members are more than willing to pay their fair share – as required by Oregon’s constitution – as long as ODOT keeps up its side of the agreement. But, to date, major road improvements have not been completed, road maintenance has been delayed, and our roads are less safe for passenger vehicles and trucks. Meanwhile, trucking companies – most of which own fewer than 5 trucks – are forced to pass astronomical tax rates on to consumers, who end up paying more for household goods,” Jarvis added. “Trucks play a critical role in moving goods to communities and families in Oregon, and it’s long past time that we ensure they are paying their fair share of taxes.”
The Oregon Attorney General’s office and ODOT declined to comment on the complaint.
Oregon Rep. Shelly Boshart Davis (R-Albany) issued a press release in support of the lawsuit.
“As a proud owner of a family-operated trucking business myself, I fully support the Oregon Trucking Association’s lawsuit against the state of Oregon for overpayment of weight mile taxes,” Boshart Davis said. “Our trucking businesses have been paying far more than our fair share of highway taxes for too long. By 2025, that number will total half a billion dollars in overpayments. I urge my colleagues in the Legislature to consider future opportunities to resolve this injustice.”
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