Oregon Democrats Move Gas Tax Referendum to May Despite Party Defections and Republican Walkout
Despite five Democrats in the House of Representatives siding with Republicans, the public vote on Oregon’s controversial transportation funding bill has finally been moved to the May primary.
The five Democrats who voted against the bill yesterday (Monday) were Emerson Levy (Bend), Lesly Munoz (Woodburn), Sue Rieke Smith (Wilsonville), Ricki Ruiz (Gresham), and Lamar Wise (Portland).
Adding to the tension in the chamber was a walkout during the floor session by eight Republicans.
Oregon Department of Transportation Funding Package Carried by a 31-20 Margin
The vote was carried with a 31-20 margin and has moved to Governor Tina Kotek’s office for ratification.
The majority of Oregon’s Democratic lawmakers, in both the Senate and the House, moved to have the referendum changed from the November elections to the May primaries. This will give them more time to plan budgetary strategies for the state’s cash-strapped Department of Transportation.
On the other hand, opponents believe fewer Oregonians will vote on the bill at the primaries than would be the case at the November elections.
Sources: Oregon Secretary of State election participation statistical summaries and statewide turnout results
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Without Additional Funding, ODOT Faced Massive Employee Layoffs and Budget Restraints on the Maintenance of its Dilapidated Transportation Network
ODOT had warned that the multi-million-dollar shortfall in its budget over the biennium could result in layoffs involving hundreds of employees. It would also severely curtail desperately needed bridge and road maintenance on its aging transportation network.
Facing a $242 million shortfall, lawmakers passed a scaled-down transportation funding package. However, raising gas taxes and vehicle fees to fund the package was met with intense opposition, which led to the Republicans collecting more than 200,000 signatures to put the controversial bill to a public vote.
Now There is Talk of Legal Action
Now that the Democrats have succeeded in moving the referendum to May, there is talk that the Republicans may take legal action.
Here is what Oregon’s Elections Division verified for the HB 3991 referendum petition, plus the new election date set in SB 1599.
| Item | Verified detail | Why it matters |
|---|---|---|
| Petition | Referendum Petition 2026-302 (filed on parts of HB 3991) | Triggers a statewide vote on the transportation taxes and fees package |
| Signatures accepted | 191,828 signatures accepted for verification (first submission) | Shows the scale of the petition effort |
| Valid signatures | 163,451 valid signatures | Enough to qualify the referendum for the ballot |
| Validity rate | 85.21% of signatures accepted for verification | Explains why the petition cleared verification quickly |
| Election date | Moved to May 19, 2026 primary by SB 1599 (was qualified for Nov 3, 2026) | Changes who is likely to vote and when the outcome lands |
| Ballot title status | Certified ballot title issued Feb 6, 2026 | Sets the official wording voters will see |
Oregon is one of the few states that automatically ties its tax code to federal changes. The transportation funding bill disconnects from three federal provisions, saving $291 million in state revenue over the next 18 months.
This could be the reason why corporations paid 18.5% of Oregon income taxes in the mid-1970s, but are now projected to pay 8.7% in 2025-27, which equates to about 1 in 11 dollars. This means that personal income tax covers more of the load.
Analysts point to reduced corporate taxation as one of the possible reasons why lawmakers keep targeting specific federal tax breaks baked into Oregon law.