Photo by�Robson Hatsukami Morgan on Unsplash
In Oregon, private and for-hire carriers need to get a highway use tax bond and maintain appropriate records. Keep reading to see what carriers need to do.
Who needs the highway use tax bond?
Motor carriers operating trucks over a certain weight in Oregon need to register with the state’s Department of Transportation in order to legally travel in the state. Carriers operating certain vehicles or combinations of vehicles need to register and get a surety bond—check the Oregon Vehicle Code Chapter 825 for a complete look at who is subject to registration and bonding.
If you’re a carrier that needs to register, here’s what ODOT asks you to do. First, you’ll need to fill out an application for an Oregon Motor Carrier Account. If applicable, complete an application for an Oregon IRP and IFTA license. Your business’s Assumed Business Name must be on file with the Secretary of State, assuming your business is based in the state. In-state carriers also need an established place of business in the state and proof of their Oregon residency.
If you’re an out-of-state applicant, you may need to submit a few more documents, so check ODOT’s requirements before submitting your registration application.
How to get bonded
The highway use tax bond ensures motor carriers are paying their taxes as the state and federal law require. The amount of the surety bond needed depends on how many vehicles the motor carrier operates in the state. It also varies depending on if the carrier is a new or established carrier. A new applicant may be treated as an established applicant if they have substantial control over the carrier’s operations in Oregon.
New carriers need surety bonds in these amounts, with a maximum bond amount of $10,000:
- $2,000 for one vehicle
- Plus $375 per vehicles two through five
- Plus $250 per vehicles six through ten
- Plus $125 per vehicle above ten vehicles
Established carriers need surety bonds in these amounts, with a maximum bond amount of $20,000:
- $2,000 for one vehicle
- Plus $750 per vehicles two through five
- Plus $500 per vehicles six through ten
- Plus $250 per vehicle above ten vehicles
Get in touch with ODOT if you have questions about registering as a motor carrier in Oregon�and get in touch with Single Source Insurance to get your surety bond today!