Oregon’s $14.6 Billion Road Fix Plan Sparks Backlash Over Soaring Driver Costs

Oregon motorists face $14.6 billion in tax and fees to upgrade the state’s dilapidated transport network.

House Bill 2025 has raised concerns with many lawmakers, including members of the legislative transportation committee, but was nevertheless passed with a slender 7-5 party-line vote.

 

Bill May Not Be Passed in Time Before Legislative Session Ends

However, the bill may not be passed in time before the current legislative session ends in 10 days.

The bill includes a string of tax and fee increases that Oregonians could be asked to pay.

 

Gas Tax and Other Increases

Oregonians will pay a tax of 55 cents a gallon for gas, up from 40 cents, providing an additional $110 million annually.

The biggest money-spinner will be a triple increase on the state’s payroll tax, from 0.1% to 0.3%, which will generate $450 million annually by 2031.

One of the biggest beneficiaries of the increases will be the State Highway Fund,  which can expect an annual injection of $270 million by 2028.

This will be generated with the introduction of a new transfer tax – 1% on used vehicles and 2% on new vehicle sales. Half of the funds will go to the Oregon Department of Transportation for road maintenance and operations, 30% to Counties, and one-fifth to cities.

Truck drivers will not escape unscathed. Weight-mile taxes are expected to generate an additional $140 million by 2030.

Overall increases in DMV fees have also been introduced, while owners of electric vehicles will pay per mile driven.

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  1. G says

    Due to years of mismanagement and accountability by Democrats in our counties and State Capitol, Oregon residents will have to pay the cost of their mismanagement. Due to the super majority, republicans usually get overlooked and hv no say. Time for that to change. Vote is a republican that has common sense and get Oregon back on track!

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