Oregon Republicans Push For Referendum On New Transportation Taxes Following Governor’s Funding Bill

In Oregon, a faction of Republican lawmakers is mobilizing to challenge Governor Tina Kotek’s substantial transportation funding bill, recently enacted during a special session. They are establishing petition-signing stations statewide, aiming to collect enough signatures to place the proposed transportation taxes before voters.

Last week, Governor Kotek enacted a $4 billion transportation measure that increases the state’s gas tax from 40 to 46 cents per gallon. Additionally, the law imposes a fee on electric vehicle (EV) drivers, charging 2.3 cents for every mile driven. EV owners can also choose to pay a flat annual fee of $340 instead of tracking their mileage. Moreover, registration fees will rise by $42, and title fees will see an increase of $139 at the DMV.

These tax adjustments are slated to take effect on December 31 and are designed to address a $300 million funding shortfall at the Oregon Department of Transportation (ODOT). Without this legislation, the agency would have faced severe budget cuts, potentially leading to hundreds of layoffs.

In Oregon, citizens can trigger a referendum on newly passed laws through a petition, a move that the Republicans are currently pursuing. To succeed, they need signatures from 4% of the state’s voting population from the last gubernatorial election, which translates to approximately 78,000 signatures.

If the Republicans gather enough support, the transportation bill will be placed on next year’s ballot, thereby freezing the implementation of the new taxes until voters have their say. Consequently, if the referendum proceeds, funding for ODOT jobs will remain uncertain until the election results are in next fall, putting those positions at risk.

On Saturday, Republican leaders and volunteers launched their signature collection campaign, aiming to halt the new taxes until a public vote can take place in November 2026. The initiative, dubbed No Tax Oregon, is actively seeking signatures daily across various locations, with members expressing their commitment to gathering over 75,000 signatures to secure a measure on the ballot.