Oregon Democrats Near Finalizing Major Gas Tax, Vehicle Fee Hikes for Transportation Funding

Oregon Democrats are advancing significant tax proposals to fund a major transportation package aimed at upgrading roads, bridges, and public transit while supporting electric vehicle adoption. The proposals include raising the gas tax incrementally to as much as 80 cents per gallon by 2032, increasing vehicle registration and title fees, and implementing new sales taxes on new and used vehicles. Progressive Democrats, including Senators Khanh Pham and Jeff Golden and Representatives Mark Gamba and Sarah Finger McDonald, have unveiled the SMART framework, calling for approximately $2.5 billion in funding, which surpasses earlier party leader proposals. This framework emphasizes investments in programs like Safe Routes to Schools and the Great Streets Program and aims to address a predicted $350 million deficit at the Oregon Department of Transportation. Republicans oppose the steep tax increases, arguing they would make Oregon's gas tax among the highest nationally. The proposals reflect ongoing negotiations with a legislative deadline approaching, illustrating a divide between moderate and progressive Democrats on the scale of tax hikes needed to support modernizing Oregon's transportation infrastructure.