HomeMy WebLinkAboutItem B - Transport. FundingEUGENE CITY COUNCIL
AGENDA ITEM SUMMARY
Work Session: Transportation Funding for Pavement Preservation
Meeting Date: January 19, 2005 Agenda Item: B
Department: Public Works Staff Contact: Kurt Corey
www. cl. eugene, or. us Contact Telephone Number: 682-5241
ISSUE STATEMENT
This work session provides an opportunity for the council to review the progress on pavement
preservation program funding efforts, hear updates on cooperative efforts with partner agencies, and
discuss potential revisions to Ordinance No. 29278, the Business License Tax on Motor Vehicle Fuel
Dealers.
The implementation of a 3-cent-per-gallon local motor vehicle fuel tax in August 2003, together with the
reimbursement component of the transportation systems development charge, has allowed the City to
begin addressing the significant backlog of pavement preservation projects in Eugene. However, this
backlog continues to grow. Additional funding is needed to reverse this trend and to do the repair work
necessary to ensure the efficient and safe operation of our local transportation system.
BACKGROUND
Previous Council Action and History
In October 2001, the Citizen Budget Subcommittee on Transportation System Funding presented its
recommendation that the council implement a transportation funding package consisting of a
combination local motor vehicle fuel tax and transportation system maintenance fee for the purpose of
generating an additional $9 million annually to address the City's critical transportation system funding
needs. On January 27, 2003, the council approved the local motor vehicle fuel tax at the 3-cent level.
On September 27, 2004, the council reviewed the progress to date on pavement preservation program
funding efforts, heard updates on cooperative efforts with partner agencies, and discussed the potential
implementation of additional funding options, as well as a potential increase in the level of the existing
local fuel tax. At that meeting, the council directed staff to bring back draft ordinances increasing the
local motor vehicle fuel tax by an additional 2 cents (to 5 cents-per-gallon) and establishing a
transportation system maintenance fee. The council also requested at that time that staff bring back
information on possible bonding options for funding pavement preservation needs.
On October 27, 2004, the council reviewed and discussed the two draft ordinances and also reviewed
bonding alternatives for funding the backlog of pavement preservation projects. At that meeting, the
council directed that the amendments to the fuel tax code be moved forward to public hearing with no
amount specified on the level of tax at this time. The council further determined by majority vote to
discontinue efforts to establish a transportation system maintenance fee. A public hearing on December
6, 2004, provided additional public input on the proposed changes to the motor vehicle fuel tax.
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The Pavement Preservation Funding Need and Estimated Revenue Yields
The implementation of a 3-cent local motor vehicle fuel tax in August 2003, together with the
reimbursement component of the transportation SDC and the transfer from Lane County of new OTIA
II! maintenance and preservation monies, has allowed the City to begin addressing the significant
backlog of pavement preservation projects. However, this backlog is projected to grow from the current
level of nearly $94 million to a projected $180 million within the next decade. Additional funding is
needed to reverse this trend to ensure the efficient and safe operation of our local transportation system.
In its report to the council in October 2001, the Citizen Budget Subcommittee on Transportation System
Funding determined that the appropriate level of new revenue to provide adequate funding for Eugene's
transportation system was $9 million per year, with $8.5 for pavement preservation and $500,000 for the
off-street bicycle system and traffic calming elements. This funding level of $8.5 million for the
pavement preservation program continues to be an appropriate target because it would allow the City to
make effective progress in addressing the backlog of pavement preservation projects while also
mitigating disruption to the transportation system and to the community due to construction.
Using the most updated information on actual local fuel tax collections, staff estimates that a Eugene
fuel tax generates annual revenue of approximately $725,000 per one cent of tax. This is somewhat
higher than initial yield estimates for this revenue source but is an accurate reflection of Eugene's first
14 months of actual collections. Extrapolating this data, Eugene could anticipate the following total
revenue yields at the various tax levels shown:
Motor Vehicle Estimated Annual
Fuel Tax Level Revenue Yield
3 cents (current) $2,175,000
5 cents (2-cent increase) $3,625,000
7 cents (4-cent increase) $5,250,000
10 cents (7-cent increase) $7,250,000
In addition to the current 3-cent fuel tax, dedicated pavement preservation revenues from transportation
reimbursement SDCs and from the new County/City OTIA II! revenue-sharing agreement are expected
to provide an estimated $1.0 - $1.5 million per year in dedicated pavement preservation funding. To
address the $7 million remaining pavement preservation revenue gap with a local motor vehicle fuel tax
alone would require that the council adopt a local fuel tax in the 1 O-cent-per-gallon range. The goal of
revenue generation aside, other fiscal and public policies that weigh in this decision are outlined below.
Other Considerations, Goals and Principles
Diversification of Revenue - One of the Guiding Principles used by the Citizen Budget Subcommittee in
the development of its recommendation for new, locally-controlled revenue sources for transportation
funding was the principle of diversification of revenue sources. The concept adhered to by the
subcommittee was that an overall funding strategy for transportation system service needs should
include multiple funding sources which will adequately address the full range of identified
transportation system service needs. For that reason, the subcommittee was reluctant to consider
transportation funding recommendations which relied on only one primary source of revenue. This
resulted in a recommendation by the subcommittee for a combination funding package consisting of a
transportation utility fee and a small local motor vehicle fuel tax.
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Another concern discussed by the subcommittee with regard to relying on a motor vehicle fuel tax as the
primary source of locally-controlled transportation funding was the fact that historically, and across the
nation, motor fuel taxes have been a slow-growing revenue source that has not proved able to keep up
with funding needs. The level of fuel tax revenue generated is subject to fluctuations reflecting changes
in consumer consumption patterns as well as newer, more energy-efficient motor vehicle fuel sources
which reduce the overall volume of fuel sales.
Another consideration in a discussion of relying on the motor vehicle fuel tax as the primary source of
locally-controlled revenue for transportation funding is the fact that the revenue objective with respect to
this tax (i.e., generating more funding) may conflict with other public policy goals--such as federal,
state and local policies and transportation plans aimed at reducing reliance on the automobile by
increasing other transportation choices available in the region.
Equity with Other Local Jurisdictions - In previous discussions by both the City Council and the Citizen
Budget Subcommittee on Transportation System Funding, there was a concern expressed that, as much
as possible, a "level playing field" be maintained with other local jurisdictions with regard to the level of
Eugene's local fuel tax. At this time, Springfield is not considering additional increases to its local fuel
tax, primarily because Springfield is achieving its initial revenue target, which is providing sufficient
funding for that city to manage its relatively smaller backlog of pavement preservation projects.
Currently, no other local jurisdiction in Oregon is administering a local motor vehicle fuel tax in excess
of 3 cents, although nearly a dozen cities and counties have enacted such ordinances.
Members of the Budget Subcommittee and the council have expressed concern in the past about the
potential for a several-cent difference in Eugene's fuel tax from that imposed by neighboring
jurisdictions to both undermine Eugene' s revenue stream due to potential "market flight," and at the
same time to create a competitive disadvantage for Eugene fuel retailers and businesses. In those
discussions, it was generally acknowledged that a relatively small difference in fuel tax levels (2-to-3
cents) from those in adjoining communities would probably not have much impact on consumer choices
around fuel purchases, given the existing differential in retail gas prices at various service stations in the
metropolitan area.
There has also been discussion at the council level about the possibility of Lane County adopting a
county-wide motor vehicle fuel tax to provide transportation system funding for Lane County cities.
However, in the most recent discussions of this topic, at a regional transportation summit convened by
the Lane County Board of County Commissioners in December 2003, the board chose not to pursue
either a county-wide motor vehicle fuel tax or a county-wide motor vehicle registration fee.
Proposed Revisions to the Eugene Code
Increasing the Level of the Business License Tax - The proposed revisions to the Eugene Code
concerning motor vehicle fuel tax are outlined in Attachment A. The first of the proposed revisions
would increase the level of the business license tax on motor vehicle fuel dealers by an additional
amount, yet to be specified by council. Staff discussions with the City's tax administrator, the ODOT
Fuels Tax Group in Salem, suggest that a minimum of 30 to 60 days from the date of adoption would be
required for implementation of the increased fuel tax in order to give adequate notice to the dealers and
to make appropriate modifications to the reporting forms and instructions.
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Providing for Partial Refunds on Certain Sales of Bulk Diesel Fuel - Staff is also proposing adoption of
an amendment, similar to Springfield' s, granting partial tax refunds to holders of weight receipts (i.e.,
those paying state weight-mile taxes) on motor vehicle fuel purchased in bulk for distribution at the
holder's own fueling facility within the city limits.
In July 2004, the Springfield City Council considered testimony showing that a relatively large number
of companies with bulk diesel fueling facilities which fuel their own fleets within the Springfield city
limits traveled only a minor proportion of their mileage on Springfield streets. As a result, it was
concluded that the local companies operating these vehicles were likely paying a disproportionate share
of the local fuel tax in that city, compared to the miles driven on local streets. The Springfield City
Council subsequently adopted an amendment to its fuel tax ordinance that authorized an 80% refund of
city tax for diesel fuel sold for vehicles which were also subject to the state weight-mile tax and were
fueled at their owner's own bulk fueling facility within the city limits.
A number of local companies in Eugene also have bulk diesel fuel facilities servicing their own fleets
within the Eugene city limits. Some of these companies have compiled data to support their assertion
that the majority of the miles driven by their diesel-fueled fleets are not driven on Eugene streets. As
was the situation in Springfield, this results in a disproportionate tax burden to these companies. Like
the bulk fuelers in Springfield, these local business owners are concerned about the competitive
disadvantage created by Eugene's fuel tax when applied to their diesel-fueled fleets which are being
driven primarily outside the city limits of Eugene.
Additional Proposed Revisions - In consultation with the State Fuels Tax Group, staff is proposing a few
additional housekeeping amendments in addition to those previously discussed. The first proposed
housekeeping amendment addresses the issue of the interest rate to be charged on delinquent tax
payments (i.e., equivalent to 12% per annum) and is consistent with the ORS language applicable to the
State motor vehicle fuel tax. The second proposed housekeeping amendment expands the language for
the exemption of exported fuels to include export transactions in any quantity, since the intention was to
exempt all exported fuel not in the fuel tank of a motor vehicle on the basis that such fuel would not
ultimately be used in propelling a motor vehicle on Eugene city streets. The third proposed
housekeeping amendment would add language to clarify the intent and practice around granting refunds
to purchasers who pay the City' s tax for fuel that will not ultimately be used in on-street motor vehicles.
These proposed changes are intended to clarify the council's intent around the application of the city
fuel tax and also to help maintain consistency between the administration of the city and state fuel taxes.
RELATED CITY POLICIES
The council' s Vision and Goals' Statement with respect to Fair, Stable and Adequate Financial
Resources reaffirms commitment to "a local government whose ongoing financial resources are based
on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and
deliver municipal services." The 2001-2002 City Council Work Plan Item 1 under this goal called for an
effort to "Identify and implement funding sources (including possible reallocation of existing sources)
for operation, maintenance and preservation of the transportation system." Additionally, the City's
FinancialManagement Goals' and Policy, A. 4, states that the City's municipal service priority Level 2
(second only to the preservation of the public safety system) is to "maintain and replace the City's fixed
assets, which includes.., infrastructure.., so as to optimize their life."
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COUNCIL OPTIONS
This is a work session and, as such, the council is not required to take any action, as potential action on
amendments to the motor vehicle fuel tax dealer code is currently scheduled for January 24. At that
time, the council could choose to do the following:
Option 1: Decline to take any action, effectively choosing to make no changes to the Eugene Code
concerning business license tax on motor vehicle fuel dealers;
Option 2: Approve the proposed amendments to the Eugene Code, including an increase to the
Business License Tax on Motor Vehicle Fuel Dealers of an additional [amount to be
specified] cents;
Option 3: Choose not to specify the exact amount of the fuel tax in the amending ordinance but, instead,
make provision in the ordinance to allow the fuel tax level to be adjusted administratively to
support the pavement preservation funding target determined each year in the annual budget
process and approved by council;
Option 4: Direct the City Manager to bring back for further discussion additional options for funding
Eugene' s backlog of pavement preservation projects; and/or
Option 5: Direct the City Manager to do any combination or variation of these options.
CITY MANAGER'S RECOMMENDATION
The City Manager recommends adoption of the proposed amendments to the motor vehicle fuel tax code
implementing a 2-cent increase to the existing local motor vehicle fuel tax, a provision for 80% refunds
to the specified diesel users and various minor housekeeping amendments. The scheduled date for
action on the proposed code amendments is January 24.
SUGGESTED MOTION
This work session is for informational purposes only. There is no suggested motion for this item.
ATTACHMENTS
A. Proposed amendments to the Eugene Code (Concerning a Business License Tax on Motor Vehicle
Fuel Dealers)
B. "Staff Responses to Council Requests for Information," a memo from Kurt Corey dated
January 10, 2005
FOR MORE INFORMATION
Staff Contact: Kurt Corey
Telephone: 682-5241
Staff E-Mail: kurt. a. corey~ci, eugene, or. us
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ATTACHMENT A
ORDINANCE NO.
AN ORDINANCE CONCERNING MOTOR VEHICLE FUEL DEALER'S
BUSINESS LICENSES; AND AMENDING SECTIONS 3.465, 3.467,
3.474, 3.480, 3.483, AND 3.484 OF THE EUGENE CODE, 1971.
THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS:
Section 1. The definition of "weight receipt" is added to Section 3.465 of the
Eugene Code, 1971, in alphabetical order, to provide:
3.465 Definitions. As used in sections 3.465 through 3.489 of this chapter, unless
the context requires otherwise the following words and phrases shall mean:
Weight Receipt. A receipt issued by the Oregon Department of
Transportation, stating the combined weight of each self-propelled or motor-
driven vehicle.
Section 2. Subparagraph (b) of Section 3.467 of the Eugene Code, 1971, is
amended to provide:
3.467 Amount and Payment. In addition to any fees or taxes otherwise provided
for by law, every dealer engaging in the city in the sale, use or distribution of
motor vehicle fuel, shall:
(b) Pay a license tax computed on the basis of $[.03 (three cents)]
per gallon of such motor vehicle fuel so sold, used or
distributed as shown by such statement in the manner and within the
time provided in this code.
Section 3. Section 3.474 of the Eugene Code, 1971, is amended to provide:
3.474 Payment of Tax and Delinquency.
(1) The license tax imposed by sections 3.465 to 3.489 of this chapter shall
be paid to the tax administrator on or before the 25th day of each
month.
(2) Except as provided in subsections (3) and [(4)] (5) of this section, if
payment of the license tax is not paid as required by subsection (1) of
this section, a penalty of 1 percent of such license tax shall be
assessed and be immediately due and payable.
(3) Except as provided in subsection [(4)] (5) of this section, if the payment
of the tax and penalty, if any, is not made on or before the 1st day of
Ordinance- ]
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the next month following that month in which payment is due, a further
penalty of 10 percent of the tax shall be assessed. Said penalty shall
be in addition to the penalty provided for in subsection (2) of this section
and shall be immediately due and payable.
(4) If the license tax imposed by sections 3.465 to 3.489 of this code is
not paid as required by subsection (1) of this section, interest
shall be charged at the rate of .0329 percent per day until the tax,
interest and penalties have been paid in full.
(45) Penalties imposed by this section shall not apply if a penalty has been
assessed and paid pursuant to section 3.470. The tax administrator
may for good cause shown waive any penalties assessed under this
section.
($6) If any person fails to pay the license tax, interest, or any penalty
provided for by this section, the tax, interest, and/or penalty shall be
collected from that person for the use of the city. The tax administrator
shall commence and prosecute to final determination in any court of
competent jurisdiction an action at law to collect the same.
($7) In the event any suit or action is instituted to collect the business
license tax, interest, or any penalty provided for by this section, if the
City is the prevailing party, the City shall be entitled to recover from the
person sued reasonable attorney's fees at trial or upon appeal of such
suit or action, in addition to all other sums provided by law.
Section 4. Subsections (1)(b) and (6) of Section 3.480 of the Eugene Code,
1971, are amended to provide:
3.480 Exemption of Export Fuel.
(1) The license tax imposed by section 3.466 shall not be imposed on
motor vehicle fuel:
(b) Sold by a dealer [;"'
for export by the purchaser to an area or areas outside the city
in containers other than the fuel tank of a motor vehicle, but
every dealer shall be required to report such exports and sales
to the city in such detail as may be required.
(6) In support of any exemption from taxes on account of sales of motor
vehicle fuel [~'-' ~'-"~,,~'~. ,°' ..... ""'~o '-": :nn ,-,o.. ..... ,,~ool for export by
the purchaser, the dealer shall retain in his/her files for at least three
years, an export certificate executed by the purchaser in such form and
containing such information as is prescribed by the tax administrator.
This certificate shall be prima facie evidence of the exportation of the
motor vehicle fuel to which it applies only if accepted by the dealer in
good faith.
Ordinance - 2
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Section 5. Section 3.483 of the Eugene Code, 1971, is amended to provide:
3.483 Refunds.
(1) Refunds of tax on motor vehicle fuel will be made pursuant to
[applicable] any refund provisions of Chapter 319 of the Oregon
Revised Statutes, including but not limited to ORS 319.280 and
319.831. Claim forms for refunds may be obtained from the Tax
Administrator's office.
(2) A holder of a weight receipt that certifies to the city that the motor
vehicle fuel upon which the tax was imposed will be used only for
fueling vehicles subject to the State of Oregon's weight-mile tax,
may apply for a refund of 80 percent of the tax imposed by Section
3.467 of this code on motor vehicle fuel purchased in bulk for
distribution at the weight receipt holder's facility located within the
city. This subsection applies only to motor vehicle fuel purchased
by the weight receipt holder on or after
(3) Ail claims for refund under subsection (2) of this section shall be
filed within 15 months of the date that the fuel was purchased and
may not be filed more frequently than quarterly. The minimum
claim for refund filed under subsection (2) of this section shall be
not less than $25.00.
Section 6. Section 3.484 of the Eugene Code, 1971, is amended to provide:
3.484 Examinations and Investiqations. Pursuant to section 2.019 of this code,
the tax administrator, or duly authorized agents, may make any examination
of accounts, records, stocks, facilities and equipment of dealers, service
stations and other persons engaged in storing, selling or distributing motor
vehicle fuel or other petroleum product or products within this city, and such
other investigations as it considers necessary in carrying out the provisions
of sections 3.465 through 3.489. If the examinations or investigations
disclose that any reports of dealers or other persons theretofore filed with the
tax administrator pursuant to the requirements herein, have shown
incorrectly the amount of gallonage of motor vehicle fuel distributed or the tax
accruing thereon, the tax administrator may make such changes in
subsequent reports and payments of such dealers or other persons, or may
make such refunds, as may be necessary to correct the errors disclosed by
its examinations or investigation. The dealer shall reimburse the city for the
reasonable costs of the examination or investigation if the action discloses
that the dealer paid 95 percent or less of the tax owing for the period of the
examination or investigation. In the event that such an examination or
investigation results in an assessment by and an additional payment due to
the city, such additional payment shall be subject to interest at the rate of [$8]
.0329 percent per [yea~] day from the date the original tax payment was due.
Ordinance - 3
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Section 7. The City Recorder, at the request of, or with the concurrence of the
City Attorney, may administratively correct any reference errors contained herein or in
other provisions of the Eugene Code, '197'1 to the provisions added, amended or
repealed herein.
Passed by the City Council this Approved by the Mayor this
~ day of ,, 2004 ~ day of ,, 2004
City Recorder Mayor
Ordinance - 4
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ATTACHMENT B
Public Works
Administration
City of Eugene
858 Pearl Street
MEMORANDUM
(541) 682-5241
(541) 682-6826 FAX
www. ci.eugene.or, us
Date: January 10, 2005
To: Mayor Piercy and City Council
From: Kurt Corey, Public Works Director
Subject: Staff Responses to Council Requests for Information
The information offered below addresses a number of questions that have arisen in the course of recent
community discussions and public hearings on the council's consideration of transportation funding options.
· What are the concerns being raised about the taxation ofbiofuels, particularly those fuels being sold in
Eugene for later export and use outside the city limits?
Eugene's ordinance defines motor vehicle fuel as "gasoline, diesel, mogas, methanol and any other
flammable or combustible gas or liquid...usable as fuel for the operation of motor vehicles .... "There is
currently no special tax exemption for the sale of biofuel, since the council's intent at the time the
ordinance was established was to impose the tax on the sale of all classes of motor vehicle fuels used to
propel vehicles on Eugene's street system. The current motor vehicle fuel tax (MVFT) ordinance does,
however, contain a tax-exemption provision for fuel exported by a dealer, as well as an exemption for
small-quantity purchases for export outside the city in containers other than the fuel tank of a motor
vehicle. Consistent with existing ordinances in other Oregon local jurisdictions, Eugene's exemption for
fuel subsequently exported by the purchaser currently applies only to small-quantity purchases in
individual quantities of 500 gallons or less.
A concern was raised by a Eugene bio fuel distributor who is purchasing fuel within the city limits for
export and ultimate use in Portland and other areas outside of the Eugene city limits. Because he is
purchasing the biofuel inside the city limits in quantities exceeding 500 gallons, those purchases of
subsequently exported fuel are currently subject to the Eugene MVFT. After consultation with Oregon
Department of Revenue Fuels Tax Group, staff is proposing an amendment to the ordinance to strike the
small-quantity limitation language from the exported fuel exemption, making exempt from tax all sales
of exported motor vehicle fuel (including exported biofuel).
· There has been a suggestion that Eugene shouMprovide a MVFT exemption for businesses that
voluntarily agree to participate in the Lane Clean Diesel Project. What is this project, and how does it
relate to Eugene's motor vehicle fuel tax?
The Lane Clean Diesel Project is a collaboration between public-sector, private-sector and non-profit
entities to bring ultra-low sulfur diesel fuel to Eugene ahead of the federal government's mandated
schedule. Black carbon or carbon soot produced by diesel engines is one of the biggest factors in global
warming. Ultra-low sulfur diesel (ULSD) is the most cost effective method for reducing particulate
matter and toxics from diesel engines. The fuel allows pollution control devices such as catalytic
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ATTACHMENT B
converters to function more effectively. Federal rules require by 2006 that all diesel fuel sold in the
United States will have low sulfur levels. By 2007, all new diesel engine vehicles must have emission
control devices, which are estimated to be 95% effective in eliminating particulates and hydrocarbon
emissions. However, there is a cost to retrofitting vehicles for the emission control devices, and the
ULSD itself is currently about 15-cents more per gallon than regular diesel. Grants are currently
available to offset the higher cost of ULSD as well as to assist school districts in retrofitting school buses
with emission control devices to attain the full pollution-reducing benefit of ULSD.
While the City of Eugene is an active participant in the Lane Clean Diesel Project, staff is not
recommending that Eugene's scarce pavement preservation resources be used to subsidize the cost of
making ultra-low sulfur diesel available in Eugene on an accelerated schedule, since the use of ULSD
will be mandatory by June 2006, regardless of short-term incentives which the City might offer for early
implementation of the regulations.
· What is the basis for staffs' recommendation for an 80% refund of city tax for diesel fuel sold for
vehicles also subject to the weight-mile tax and being faeled at their owner's bulk fueling facilities within
the city limits?
In July 2004, the Springfield City Council considered testimony that a significant number of companies
with bulk diesel fueling facilities servicing their own fleets within the Springfield city limits traveled
only a minor proportion of their mileage on Springfield streets. As a result, it was concluded that the
local companies operating those vehicles were likely paying a disproportionate share of the local fuel tax
compared to the miles driven on local streets. The Springfield council subsequently adopted an
amendment to its fuel tax ordinance that authorized an 80% refund of city tax for diesel fuel sold for
vehicles also subject to the state weight-mile tax which were fueled at their owner's bulk fueling facility
within the city limits.
A number of local companies in Eugene also have bulk diesel fuel facilities servicing their own fleets
within the city limits. Some of these companies have compiled data to support their assertion that the
majority of the miles driven by their diesel-fueled fleets (i.e., 90-95%) are not driven on Eugene streets.
As was the situation in Springfield, this results in a disproportionate tax burden to these companies. Like
the Springfield bulk fuelers, these local business owners are concerned about the competitive
disadvantage created by a Eugene fuel tax when applied to their diesel-fueled fleets which are being
driven primarily outside the Eugene city limits.
Neither ODOT nor the city tracks data establishing the number of miles driven by local bulk fuelers on
city streets. The 80% refund level approved by the Springfield City Council was a concession which
attempted to acknowledge that local companies with bulk fueling facilities in the city limits benefit from
a well-maintained transportation system, while also acknowledging that payment in full of the city fuel
tax creates a competitive disadvantage which may be deemed unfair when one considers that their
weight-mile fleets are driven primarily outside the city limits. State Fuels Tax Group urged that, should
Eugene choose to adopt a diesel refund provision, that we "mirror the Springfield ordinance in order to
minimize the diversity of statues" which they are called upon to administer.
Since Springfield implemented their diesel refund provision, three dealers have applied for certification
for qualification for refund of the tax on diesel fuel purchases in bulk for use at their own facility,
although no refunds have actually been granted at this time. Eugene estimates that the maximum
financial impact of a refund at the 80% level would be in the $20,000 to $25,000 range for each level of
1-cent fuel tax imposed in Eugene--or approximately $60,000 to $75,000 annually at the current 3-cent
tax level. In all likelihood, the revenue impact of such refunds would be significantly less, as not all
diesel fuel sales are made to bulk fuelers.
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