The Democratic-controlled Legislature raised the state gas tax and a range of fees last fall as a way to pay for road improvements and plug a hole in the state’s transportation budget. Republicans responded with a petition to repeal the increases, leading to a referendum that will land before voters just as the Iran war is causing the price of gas to skyrocket around the United States.
The referendum next Tuesday will give voters a chance to weigh in on a hot-button issue hitting them directly in the pocketbook at a time when prices remain elevated for everything from housing to groceries.
Republicans wasted no time in appealing to voters after the Legislature and Democratic governor signed off on the tax increase, which also included a higher payroll tax for transit projects and a boost in vehicle registration and title fees.
They needed 78,000 voter signatures to qualify the referendum for the ballot. They quickly got 250,000.
“That is a remarkable number,” said Republican strategist Rebecca Tweed.
Republicans in Oregon have countered Democrats’ affordability messaging by portraying the tax and fee increases as further fueling the high cost of living.
“Do Oregonians want to pay more? The answer is no,” said GOP state Sen. Bruce Starr, who helped lead the referendum campaign. “Everything they’re looking at is expensive.”
Under the legislation, Oregon’s gas tax would rise from 40 cents to 46 cents a gallon. That would make it tied with Maryland for the eighth highest gas tax of any state when factoring in other state taxes and fees, according to figures from the U.S. Energy Information Administration.
Oregon Democrats spent much of last year fighting to pass a transportation funding bill to help raise money for services such as road paving and snow plowing. The debate came amid projections of declining gas tax revenue as more people adopt electric, hybrid and fuel-efficient cars.
They finally passed a narrower version of their plan during a special session called by Democratic Gov. Tina Kotek.
She recently acknowledged the challenging timing of the referendum.
“Certainly, the conversation at the ballot this year ... is a tough sell right now, because I think everyone is feeling a pinch on their household budgets,” she told reporters.
