OAG 40-99.

• Case Date: November 22, 1940
• Court: Oregon

Oregon Attorney General Opinions 1940. OAG 40-99. 110OPINION NO. 40-99[20 Or. Op. Atty. Gen. 110]For the purpose of determining the rate of taxation as motor vehicle fuels, propane, butane, and iso-butane, are to be classified as gasoline rather than as diesel oil. The classification should be based upon efficiency of such fuels in operating motor vehicles as compared with gasoline or diesel oil.November 22, 1940.Hon. Earl Snell,Secretary of State. Dear Sir: Under date of November 7, 1940, you refer to section 55-105, Oregon Code 1935 Supplement, as amended by chapter 48, Oregon Laws, 1937, which provides in part as follows:

"For the registration of motor trucks and/or truck tractors propelled by diesel or fuel oil or any combustible fuel other than gasoline, a license fee of $1.50 per 100 pounds or fraction thereof shall be paid, * * *."

and state:

"The question now arises as to whether trucks using as fuel butane, propane, iso-butane, or blends or compounds thereof are using fuel 'other than gasoline' and, thereby, subjected to the additional license fees prescribed in the statute above quoted.

"Submitted herewith is certain material which we have collected relative to the character of the products or fuel referred to as butane, propane, and iso-butane.

"A question arises, also, as to the proper classification of such products under the motor vehicle fuels tax laws. Section 55-1601, Oregon Code 1935 Supplement, refers to 'motor vehicle fuels' as 'volatile and inflammable liquids.' Section 55-1609, Oregon Code 1930, as amended by chapters 272, Oregon Laws, 1937, and 318, Oregon Laws, 1939, refers to 'inflammable gas or liquid' products.

"Thus, it is necessary to classify propane, butane, iso-butane, and blends or compounds thereof as taxable as ordinary motor vehicle fuels under the general provisions of the tax act or as a special fuel provided for under section 55-1609. Therefore, if taxable under the general provisions of the fuels tax act, any and all of such products sold, used, or distributed within Oregon, regardless of the purpose, would be subject to the tax, while, if taxable under the special provisions included111 in section 55-1609, only such portion of said fuels as is sold, used, or distributed 'as fuel for the operation of motor vehicles . . . upon any public highway of this state' would be subjected to the five cents per gallon tax, it appears."

You request my opinion relative to the proper application of the license laws and fuels tax laws to trucks using propane, butane, iso-butane, or blends or compounds thereof, and to the sale, use and distribution of such products in Oregon. Section 55-1601, Oregon Code 1935 Supplement, contains the following provision:

"(b)

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