Oregon gives owners of fuel-efficient vehicles a choice: higher registration fee or mileage fee

Oregon drivers will not only pay a higher gas tax starting in January but those driving fuel-efficient vehicles will have a higher registration fee to account for the lower amount of gas taxes they pay.

Fuel-efficient vehicle drivers, however, will have the option to pay a lower registration fee, if they sign up for the state’s fee-per-mile program known as OReGO. The program, which began as a pilot in 2015 with a cap of 5,000 drivers, charges participants monthly based on the amount of miles they drive. They then receive credits on their monthly bills for any state gas taxes they paid.

The 2-cent-per-gallon gas tax increase and change in registration fees are part of legislation enacted in 2017 to better fund the state’s roads and bridges. There will also be an increase in fees for commercial trucks and buses.