The Oregon Legislature has approved a plan proposed by Governor Tina Kotek to raise taxes and fees for the Oregon Department of Transportation (ODOT). This decision follows a special legislative session in which several new measures were introduced.
The plan features multiple changes, including an increase in the state gas tax from 40 cents to 46 cents per gallon. Vehicle registration fees will also rise by $42, moving them from a previous range of $126 to $156. Additionally, the state’s title fee will go up by $139, previously set between $101 and $116. The employee payroll transit tax is set to double from 0.1% to 0.2% for two years.
During the regular legislative session in 2025, members of the National Federation of Independent Business (NFIB) were surveyed on similar proposals. According to NFIB, “NFIB members voted overwhelmingly (93% of respondents) to oppose similar tax and fee increases.”
In response to these measures, some Oregonians are organizing a referendum petition aiming to stop the increases from taking effect and allow voters to decide on the issue. The group must gather 78,000 signatures by December 30, 2025, for the measure to qualify for inclusion on the November 2026 General Election Ballot. If this effort does not meet its goal, the bill will take effect immediately after that date.
Further information about participating in or supporting this referendum effort can be found at www.stopthegastax.com.
