Oregon Lawmakers Advance Transportation Funding Bill With Tax Increases

Oregon lawmakers have advanced a transportation funding bill, HB 3991, to the House floor after a contentious special legislative session and negotiations. The bill, supported by Governor Tina Kotek, proposes increasing gas taxes by 6 cents per gallon, raising vehicle registration and title fees, doubling the payroll tax for public transit, and implementing road usage charges for electric vehicles to stabilize funding for road maintenance, public transit, and safety. Key amendments include a sunset provision ending the payroll tax increase after two years and a limitation on tax adjustments to only decrease fees, addressing concerns about affordability and tax equity between light- and heavy-duty vehicles. The legislation aims to prevent hundreds of layoffs at the Oregon Department of Transportation and maintain essential services such as pothole repairs and snow plowing. Despite initial Republican opposition, a compromise was reached, leading to a 7-5 committee vote along party lines to move the bill forward, with final votes expected soon in both the House and Senate. Public testimony and extensive debate marked the process, reflecting the bill's critical role in addressing Oregon's infrastructure needs amid divided public opinion.