Oregon Voters to Decide on Gas Tax Repeal in May Primary
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A referendum to repeal recent increases to Oregon's gas tax and vehicle fees has qualified for the May 19 primary ballot. The increases, passed by the Democratic-controlled legislature, are intended to fund road improvements and address a transportation budget deficit. Voters will now decide whether to keep the higher taxes or roll them back.
Facts First
- A referendum to repeal Oregon's gas tax and fee increases will appear on the May 19 primary ballot.
- The state gas tax increased from 40 to 46 cents per gallon last fall to fund road projects and address a budget deficit.
- Republicans collected 250,000 signatures to qualify the repeal measure, far exceeding the 78,000 required.
- Oregon gas prices average about 80 cents more per gallon than the national average, which recently topped $4.50.
- The legislature passed a narrower funding bill in a special session called by Governor Tina Kotek after the repeal effort began.
What Happened
Last fall, the Democratic-controlled Oregon Legislature passed legislation raising the state gas tax from 40 to 46 cents per gallon, along with increased vehicle registration, title, and payroll taxes. The revenue is intended to fund road improvements and address a transportation budget deficit. Opponents, led by Republicans, collected 250,000 signatures to qualify a referendum to repeal these increases, exceeding the required 78,000 signatures. The repeal measure is now scheduled for the Oregon primary ballot on May 19.
Why this Matters to You
If you drive in Oregon, you are directly paying the higher taxes at the pump and for vehicle registration. Customers report paying more to fill their tanks; one noted his cost rose from $70 to $80 for less fuel. The outcome of the May vote will determine whether these higher costs remain or are reversed. The debate over transportation funding is also happening amid projections of declining gas tax revenue due to more electric and fuel-efficient vehicles, which could affect future road maintenance and projects.
What's Next
Voters will decide the fate of the tax and fee increases on May 19. If the repeal passes, the increases would be rolled back. Regardless of the outcome, the state's need to fund transportation infrastructure remains, and lawmakers may need to explore alternative funding models, especially as gas tax revenues are projected to decline.