OR: Oregon transportation tax hike one step closer to landing on May ballot following key vote

A committee of Oregon lawmakers on Thursday advanced a proposal that would move a statewide vote on several controversial transportation taxes from November to May.

The tax hikes, passed by Democratic lawmakers last fall, were set to go into effect last month but were put on hold after a group of Republican opponents gathered enough signatures through a referendum campaign to give voters the final say.

Democrats have said they want to move the election date in order to get clarity soon on the state’s available transportation funding. Republicans have slammed the effort, calling it a political move that would violate the intention of the thousands of individuals who signed the referendum to place the tax hikes on the November ballot.

On Thursday evening, a special legislative committee created solely to take up the proposal voted 5-3 along party lines, with all Democrats in support, to advance the bill to a full Senate vote. By law, Gov. Tina Kotek must sign the bill by Feb. 25 to get the measure on the May ballot, meaning Democrats have less than two weeks to get it through both chambers and onto her desk.

Republicans are largely outnumbered in both chambers and have few options to stop Democrats from moving the election date of the tax hikes. They could boycott floor sessions to deny Democrats a quorum to hold votes, but they have not indicated publicly whether they are willing to take that extreme measure. Lawmakers who rack up 10 or more unexcused absences are also banned from running for reelection, making an extended walkout a risky tactic.

During Thursday’s committee meeting, Senate Republican Leader Bruce Starr of Dundee suggested that his caucus may seek legal action to keep the taxes on the November ballot.

“I believe that ultimately this will be in front of the courts,” Starr said. “We will see whether the legislative activity of this committee and this Legislature ... ultimately will stand up under court scrutiny.”

Regardless of the election date, lawmakers of both parties have said they expect voters will defeat the tax hikes. Voters will decide whether to double the state’s 0.1% payroll tax for public transit, raise the state’s 40 cents per gallon gas tax by 6 cents and increase car title and registration fees. The gas tax and DMV fees fund road and bridge maintenance.

The bill to move the election date also establishes special procedures for finalizing the ballot title and related information in time for the May election, as outlined in a January memo to lawmakers from the Secretary of State’s Office.

The battle over raising transportation taxes in the past year has incensed Republican lawmakers, many of whom asked their constituents in the past week to testify against Democrats’ attempt to move the vote. More than 4,000 members of the public submitted testimony, the vast majority opposed to the plan.

“I am extremely proud of Oregon’s role in bringing about the signature petition process. If you believe in democracy at all, you will be proud of that too, and you will respect that process,” Annie Kallin, a Portland resident, told lawmakers Monday during the first of two public hearings about the bill.

Democrats have defended their plan by pointing out that voters will get the final say regardless of the vote’s timing. Also, they have said, several statewide tax votes in recent years have landed on ballots outside of the general election.

“Are we going to spend those precious six months (between May and November) lobbying partisan attacks at each other?” asked Rep. Willy Chotzen, a Portland Democrat on the committee. “I’m going to choose more time to get everyone to the table to solve problems over more partisan politics.”

Republicans, meanwhile, have said moving the measure to the May ballot would mean fewer voters get a say as turnout is generally much lower in the primary than the general election. They’ve also blasted the move as political, saying that Democrats want to avoid their tax hikes being on the same ballot as Kotek, who is running for reelection.

Meanwhile, the Oregon Department of Transportation is facing a roughly $288 million budget shortfall through next year and is preparing to slash hundreds of vacant positions and reduce its services, which could mean longer wait times at the DMV and fewer snowplows on state highways.

Lawmakers are expected to finalize their plan to balance the agency’s budget by the end of the current session early next month.

©2026 Advance Local Media LLC.
Visit oregonlive.com.
Distributed by Tribune Content Agency, LLC.