Oregon High Court OKs Privilege Tax on Vehicle Sales

The Oregon Supreme Court turned back a challenge to the use of revenue from the “privilege” of selling vehicles to fund rebates for the purchase of zero-emission vehicles.

At issue was whether the revenue from a 0.5 percent tax on the sales price of certain vehicles imposed on auto dealers was required under the state Constitution to go to the state’s highway fund.

When the tax passed in 2017 as part of a massive $5.3 billion transportation bill, petitioners AAA of Oregon/Idaho and Oregon Trucking Associations Inc.—who thought the revenue should be reserved for traditional highway construction and maintenance ...