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.

Tidings Data Snapshot

Referendum Numbers And Funding Stakes
~200,000Signatures delivered to the Secretary of State
78,000Signatures needed to qualify for a statewide referendum
$354MODOT budget hole cited by transportation backers
6 centsGas tax increase that would be frozen while a vote is pending
40 to 46State gas tax per gallon if the increase ultimately takes effect

Source: KATU reporting on signature delivery, required threshold, ODOT budget hole, and the six cent gas tax increaseDailyTidings.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.

ItemWhat it doesStart date
High MPG registration add on$30 increase for vehicles rated 40 plus mpgDec 31 2025
Road usage charge for existing EVsNew mandatory per mile charge for existing electric vehiclesJuly 1 2027
Road usage charge expansionApplies to new EVs and hybrids plus plug in hybrids the following yearYear 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.

Tidings Data Snapshot

State Gas Tax Per Gallon In The Region
  • California59.6 cents
  • Washington49.4 cents
  • Oregon40.0 cents
  • Idaho33.0 cents
  • Nevada23.8 cents

Source: Federation of Tax Administrators : state motor fuel tax ratesDailyTidings.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.

Daily Tidings is independent and free to read, thanks to readers like you. Help keep it going.

Support us

Morning Brief

Sign up today for our daily newsletter, a quick overview of top local stories and Oregon breaking news delivered straight to your inbox.

You can unsubscribe at any time.

What do you think?

Your email address will not be published.

Be the first to comment.

Latest News

All news
  1. Oregon SNAP Recipients Will Need Proof of Rent and Utility Costs Starting November 21Politics & Government
  2. Southwestern Oregon Planned Parenthood to Lay Off 75, Transfer Clinics Amid Medicaid StrainHealth
  3. Oregon Man Took Out a $20,000 Loan in Someone Else’s Name Using Their Stolen MailCrime & Courts
  4. Medford Baseball Stadium Proposal Could Require $80.5 Million in Public FundingBusiness & Economy
  5. Portland Residents Near ICE Building Who Say Tear Gas Seeped Into Their Homes Lose Court ProtectionCrime & Courts
  6. Oregon Backs Court Fight Over VA Rule That Ended Abortion Care for Veterans and Their FamiliesHealth

Read More