OSCC OPPOSES HB 2674, which would levy a full suite of new taxes to fund diesel engine retrofits and replacements with large impacts on construction, trucking and agriculture.
In 2019, legislators on both sides of the aisle passed legislation to phase out older diesel engines in the Portland metropolitan area and make smart investments in newer technologies. The bill that ultimately passed, HB 2007, was a compromise to encourage the retrofit and replacement of older on-road engines in heavy traffic areas, while exempting ag trucks, log trucks and small truck fleets.
Unfortunately, just two years later, that agreement is already falling apart.
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3% excise tax on the retail sale of tires;
- 1.5% privilege tax for businesses who sell or lease off-road equipment;
- 1.5% use tax on off-road diesel equipment purchased outside of Oregon;
- 3.5% rental tax for rentals of off-road diesel equipment;
- 2% rental tax for rentals of all other qualified heavy equipment (note: this tax goes to counties not diesel retrofits);
- Privilege tax on heavy-duty trucks and light-duty vehicles; and
- Gas tax on all red dyed diesel used in off-road equipment.
This is an appalling overreach by our policymakers, particularly when many Oregon families are struggling to recover from the COVID-19 pandemic, devastating wildfires in 2020, and the recent ice storms.
At its core, this amendment creates a suite of new taxes on construction, forestry and agriculture to fund engine upgrades in Oregon’s most populous metropolitan areas. It’s fundamentally unfair to working families who are barely struggling to get by.
