Oregon voters will decide in May whether to approve or reject a law passed in 2025 that raises the gas tax, payroll tax for public transit, and car registration and title fees. The measure, known as Measure 120, gives Oregonians a direct say on one of the state’s most debated issues: how to fund transportation needs.
The decision comes as Oregon faces challenges maintaining its roads due to declining gas tax revenue from more electric and fuel-efficient vehicles and rising infrastructure costs. Lawmakers have struggled over two legislative sessions with finding enough funding for road maintenance while balancing inflation’s impact on material prices.
Measure 120 would increase the state gas tax from 40 cents to 46 cents per gallon, raise vehicle title fees from $77 to $216, and boost most vehicle registration fees. For example, passenger vehicle registration would rise from $86 every two years to $170. Motorcycle registrations would go up from $88 every two years to $172. Registration surcharges based on fuel efficiency remain unchanged by this bill.
The measure also proposes doubling the payroll tax used for public transit services—from 0.1% of paychecks to 0.2% until January 2028—meaning someone earning $68,000 annually would see their yearly transit payroll tax rise from $68 to $136 if the measure passes. A “no” vote would reject these increases and require lawmakers to seek alternative funding methods for road upkeep.
In response to failed compromises during the regular session in 2025—which led nearly 500 Oregon Department of Transportation workers receiving layoff notices—Governor Tina Kotek called a special session where Democrats passed a scaled-back transportation package projected to generate $4.3 billion over ten years without Republican support.
Opposition leaders including Ed Diehl, Senate Minority Leader Bruce Starr, and Jason Williams organized a campaign that gathered more than twice the required signatures needed for ballot placement. Their committee has raised over $166,000 according to state filings; no political committees are actively supporting Measure 120 at this time.
Originally set for November voting, Democratic lawmakers moved the election date up to May during the latest legislative session—a move Republicans opposed through walkouts and lawsuits that ultimately failed in court. The result is that Oregonians will cast their votes on Measure 120 this May.
