The Oregon Legislature’s special session on transportation funding has encountered a delay in the Senate. The House passed Governor Tina Kotek’s proposal, HB 3991, which would raise taxes and fees to support the Oregon Department of Transportation (ODOT). However, the bill is now stalled in the Senate due to the absence of a senator recovering from surgery. The missing vote is necessary to reach the three-fifths supermajority required for tax increases. The Senate will reconvene on September 17.
During a committee meeting on August 31, lawmakers adjusted the bill after public testimony. A key change was that the proposed doubling of the statewide transit payroll tax will sunset after two years, returning to its current rate of 0.1% on January 1, 2028. This adjustment reduced projected revenue from $5.8 billion over ten years to $4.3 billion.
Despite this modification, concerns remain among small business advocates. In testimony submitted by NFIB, they stated: “There is broad agreement across the political spectrum that transportation is a legitimate purpose for spending taxpayer dollars, but the Oregon Department of Transportation (ODOT) has been plagued by financial mismanagement and has repeatedly failed to deliver on promises the legislature made to Oregonians in 2017. ODOT should be held accountable and earn back the trust of Oregonians before being entrusted with new revenue, especially when transportation-related cost pressures are an increasing challenge for small businesses.”
The bill includes several other provisions: a six-cent per gallon gas tax increase (from 40 cents to 46 cents), a $42 rise in vehicle registration fees (now between $126 and $156 depending on vehicle type), an additional $30 fee for electric vehicles (raising their two-year registration cost to $316), and a $139 increase in title fees (now ranging from $101–$116 for gas cars or up to $192 for electric vehicles). The employee payroll tax for transit would also double temporarily.
On Labor Day, the House debated and passed HB 3991 with most Democrats supporting it; Rep. Annessa Hartman was the only Democrat voting against it alongside Republicans present except Rep. Cyrus Javadi, who voted in favor.
When deliberations resume on September 17, all Democratic senators must be present and supportive since no Republican support is expected.
