Oregon Lawmakers Reach Compromise on Transportation Funding Bill

Strategic Insights -

Lawmakers in Oregon have reached a compromise on a transportation funding bill, which will help to stave off hundreds of layoffs at the Oregon Department of Transportation and pay for road infrastructure projects. The bill, which was voted on by the Joint Special Session Committee on Transportation Funding, includes a number of changes to existing taxes and fees, including a gas tax increase and an increase in registration fees. The bill will now go to the House for a vote, with a final vote in the Senate expected on Wednesday.

Key Takeaways:

  • The bill includes a gas tax increase from 40 cents to 46 cents, effective Jan. 1, 2026, which is expected to raise $90 million a year.
  • Registration fees will be increased from $43 to $85 for passenger vehicles, $63 to $105 for utility vehicles, and $44 to $86 for mopeds and motorcycles.
  • The bill also includes an increase in title fees for passenger vehicles from $77 to $216.
  • The payroll tax used to support public transit will be doubled from 0.1% to 0.2% until Jan. 1, 2028.
  • A mandatory road usage charge program will be phased in starting in 2031, which will require electric vehicle drivers to participate in the OReGO program or pay a flat $340 annual fee.
  • The bill has the support of a broad coalition, including local partners and stakeholders.

Statistics:

  • The gas tax increase is expected to raise $90 million a year.
  • The increase in registration fees is expected to raise an additional $50 million a year.
  • The payroll tax increase is expected to raise an additional $20 million a year.
  • The mandatory road usage charge program is expected to generate an additional $20 million a year starting in 2031.
  • The OReGO program, whichelectric vehicle drivers can opt into, is expected to save drivers an average of $200 per year.

Sources:

  • "Oregon lawmakers reach compromise on transportation funding bill" by Oregon Capital Chronicle, oregoncapitalchronicle.com.
  • "Lawmakers make changes to Oregon's transportation funding bill" by The Observer (La Grande, Ore.), lagrandeobserver.com.
  • "Tribune Content Agency LLC", distributed by Tribune Content Agency, LLC.