Oregon Voters Will Decide This Year Whether to Block Gas Tax and Payroll Tax Hikes after the Petition Was Certified
A statewide vote on increases to the gas tax, payroll tax, and vehicle registration fees is now certain this year after enough petitioners signed to force a ballot.
Oregon Gas And Taxes On Ballot Measure In 2026
Last Monday, after Oregon paused a new gas tax hike, the Oregon Secretary of State’s Office issued a notice that the referendum petition had been verified, despite funding uncertainty for ODOT winter crews.
The Republican-backed No Tax Oregon movement submitted nearly 200,000 signatures to Oregon elections officials late last year, seeking to overturn tax and fee increases, including the six-cent-per-gallon gas tax emerging from Governor
Tina Kotek’s $4.3 billion transportation bill, signed into law in November. The group wants the transportation tax increase referred to voters.
In September, Gov. Kotek and Oregon lawmakers proposed addressing a $354 million gap in the Oregon Department of Transportation budget with a six-cent gas tax increase, a doubling of the state payroll tax, and increases to several vehicle registration fees, which would have gone into effect on December 31.
While Republican legislators pushed back, ODOT officials warned that without the funds, hundreds of jobs could be lost and maintenance stations could close.
The Secretary of State’s Office confirmed that more than 163,000 signatures had been verified, far exceeding the 78,000 required to qualify for the ballot.
Source: Oregon Secretary of State Elections Division figures, as reported by KATU
Dailytidings.com
Voters will now decide on the following in the November 2026 general election:
- A six-cent-per-gallon gas tax increase
- A payroll tax increase from 0.1% to 0.2%
- A $42 increase in passenger vehicle registration fees
- A $139 increase in title fees for passenger vehicles
These increases are currently all on hold.
Here is what is on hold until the November 2026 vote.
| Item | Current | Proposed | Notes |
|---|---|---|---|
| State gas tax | $0.40 per gallon | $0.46 per gallon | Paused pending referendum |
| Payroll tax for transportation | 0.1% of wages | 0.2% of wages | Would start Jan 1 2026 if upheld |
| Passenger registration fee | $43 per year | $85 per year | DMV renewals are often multi year |
| Passenger title fee | $77 | $216 | Increase is $139 |
Oregon May Follow Hawaii With Pay-per-mile Fees For EV Owners To Fill Gas Tax Shortfall
ODOT says the budget shortfall stems from inflation, projected declines in gas tax revenue, and other spending limits. Republican lawmakers say the department’s mismanagement of its money is a central issue.
As of May, there were over 84,000 EVs registered in Oregon, about 2% of the state’s total vehicles, and the budget shortfall stems from electric, hybrid, and fuel-efficient cars that aren’t exposed to the gas tax.
In 2023. Hawaii was the first state to create a mandatory road usage charge program to offset projected decreases in fuel tax revenue from the growing number of electric, hybrid, and fuel-efficient cars. Oregon, Utah, and Virginia have voluntary programs, and Oregon’s policy adviser works on the state’s decade-old voluntary road usage charge program.
Kotek’s proposal includes an EV road usage charge equivalent to 5% of the state’s gas tax, as well as raising the gas tax by 6 cents to 46 cents per gallon, with other fee increases on the table.
In Oregon, the usage charge would phase in starting in 2027 for certain EVs and expand to include hybrids in 2028. If the gas tax increase is approved, EV drivers would either pay about 2.3 cents per mile or choose an annual flat fee of $340.
Source: Oregon Legislative Fiscal Office, HB 3991 fiscal and revenue impact docs
Dailytidings.com
Gov. Kotek called a special session of lawmakers on Friday to find a solution. While the state Senate met as scheduled at 9 a.m., the state House failed to reach the two-thirds quorum required to conduct business, leaving the session unfinished by late Friday afternoon.