Is ethanol taxable in Oregon?
Ethanol blended gasoline is taxed at $.24 cents per gallon. Pure or denatured ethanol is not taxable until it is blended with motor vehicle fuel for highway use. There is no licensing requirement for sale, use and distribution of pure or denatured ethanol. Records of ethanol sales should be provided to the Fuels Tax Group upon request. Dealers who purchase pure or denatured ethanol to blend into motor vehicle fuel must be licensed and pay tax on the amount blended. The same rules apply to County and City jurisdictions according to applicable county and city ordinances. Contact the Oregon Department of Agriculture and the City of Portland for further information concerning ethanol requirements in Oregon.
