Oregon Trucking Association Backs Governor Kotek’s $6 Billion Transportation Rescue Plan
The Oregon Trucking Association has come out in full support of Governor Tina Kotek’s funding proposals to salvage the state’s cash-strapped Department of Transportation (ODOT).
At a public hearing on Monday, the Trucking Association urged lawmakers to stop playing politics and support the Governor’s funding package.
Governor Proposes an Increases in the Cost of Gasoline
Kotek will ask lawmakers to approve a six-cent-per-gallon increase to the current 40-cent gas tax, a levy on electric vehicle owners, increased registration and title fees, and a doubling of the state payroll tax from 0.1% to 0.2%.
If the governor’s proposal is adopted when lawmakers meet for a special session on Friday, it will raise nearly $6 billion over the next decade to upgrade the existing transportation network, as well as maintain roads and bridges. The funding will be divided between ODOT and the state counties.
Supporters of the governor’s proposal point out that income sources such as DMV fees and taxes imposed on truckers have not kept pace with inflation. They point to the introduction of fuel-efficient vehicles that have made further inroads into gas taxes.
Kelly Brooks, the governor’s policy adviser, told the hearing that ODOT and local governments across the state were unable to deliver many basic maintenance programs and operations functions because of the lack of financing.
Although more than 2,000 individuals opposed the increases in written testimony at Monday’s hearing, it is believed that the majority of lawmakers will give their go-ahead to salvage ODOT and to safeguard hundreds of jobs that are presently in jeopardy.
New Bill Will Level the Playing Field of Costs for the Trucking Associations of Oregon
The president and CEO of the Oregon Trucking Associations, Jana Jarvis, has welcomed a bill as the most significant policy for the industry in the last 30 years.
The bill will streamline taxing methodology and address the long-standing issues of ‘weight-mile’ tax and per-gallon diesel tax imposed on truckers. The current methodology is cumbersome and over-complicated, involving 86 rate tables that will be reduced to 10 tables if approved by lawmakers.
By simplifying the tables and lowering higher rates on heavier trucks, truckers will be able to plan their routes and set freight rates without the surprise of unpredictable additional costs.
The bill also proposes the introduction of a diesel fuel pump tax beginning in 2029. The cost of diesel will be the same as the pump price for gasoline. Proponents of this move also believe it reduces the possibility of tax evasion by carriers from out of state.