Oregon Pauses New Gas Tax Hike as ODOT Hires Winter Crews Amid Funding Uncertainty
The Republican-backed No Tax Oregon submitted almost 200K signatures to Oregon election officials on Friday, bringing into focus the problematic question of how highways will be funded.
No Tax Oregon Delivers ~200k Signatures To The Secretary Of State
The No Tax Oregon petition seeks to block the new gas tax in the state, specifically the 6-cent gas tax increase passed under House Bill 3991 during a special legislative session earlier this year. 78,000 signatures are required to succeed.
Source: KATU reporting on signature delivery, required threshold, ODOT budget hole, and the six cent gas tax increase
Dailytidings.com
With almost 200,000 signatures collected, the measure will now be on the November 2026 ballot once the Oregon Secretary of State verifies the submitted signatures.
| Item | What it does | Start date |
|---|---|---|
| High MPG registration add on | $30 increase for vehicles rated 40 plus mpg | Dec 31 2025 |
| Road usage charge for existing EVs | New mandatory per mile charge for existing electric vehicles | July 1 2027 |
| Road usage charge expansion | Applies to new EVs and hybrids plus plug in hybrids the following year | Year after July 1 2027 |
The tax envisaged a 6-cent increase to the state’s 40-cent-per-gallon gas tax, or hikes to title and registration fees; electric vehicle drivers would pay a fee per mile driven; and the state’s 0.1% payroll tax for transit would temporarily double. But this was suspended after the Secretary of State verified the signatures on the petition.
ODOT Continues Hiring For Winter Maintenance Despite Unresolved Funding
ODOT is currently facing a $354 million budget deficit. Oregon Governor Tina Kotek earlier warned that once the signatures are verified, the Oregon Department of Transportation faces a significant budget deficit that could affect emergency funding for Oregon’s roads, bridges, and transit systems.
Source: Federation of Tax Administrators : state motor fuel tax rates
Dailytidings.com
Approximately 200 maintenance worker positions would be eliminated, and 170 jobs would be vacant if the tax increase does not take effect. There would also be minimal overnight work, even on the most important highways, and limited overtime use for maintenance crews.
Earlier this year, Governor Kotek also warned that a successful referendum “would throw Oregon’s basic services back into crisis – just as winter weather approaches.
Despite the uncertainty created by the November 2026 ballot, ODOT is moving forward with hiring vacant winter maintenance positions, as the agency analyzes the funding situation following the governor’s directive to continue hiring for the time being.