In a significant political development, opponents of new transportation taxes in Oregon have taken major steps to overturn recent legislative changes. The No Tax Oregon campaign, led by Senate Minority Leader Bruce Starr, has submitted nearly 200,000 voter signatures to state elections officials in Salem. This action aims to block the implementation of new taxes approved by Democrats.
Details of the Tax Hikes and Signature Submission
The proposed tax changes include an increase to the state’s gas tax, vehicle registration fees, and a new transit-oriented payroll tax. These hikes were scheduled to take effect next month. With the collection of signatures, which far exceeded the necessary 78,000, the process to refer the tax hikes to the November 2026 ballot has begun.
- Estimated signatures submitted: 200,000
- Signatures required for referral: 78,000
- Suspension of taxes until November 2026 ballot
State elections officials are expected to verify the validity of these signatures by January 29, although the likelihood of success for the petition is high. This initiative represents a strong opposition to the tax increases enacted in late September.
Governor’s Response and Potential Consequences
Governor Tina Kotek had advocated for these tax increases to avert significant layoffs and service reductions within the Oregon Department of Transportation (ODOT). However, the signature submission puts pressure on elected officials and complicates funding strategies for the agency.
Current Challenges for ODOT
- Funding shortfall still exists despite tax measures being suspended.
- Approximately 300 ODOT employees resigned from July to December.
- ODOT has over 600 unfilled full-time positions.
Kotek’s administration stated that while immediate service cuts should be avoided, financial challenges will persist. Spokeswoman Roxy Mayer emphasized the importance of protecting vulnerable populations who rely on public transit.
Future Legislative Session and Potential Actions
The upcoming legislative session in February raises questions about the future of the transportation funding legislation. Aside from the contested taxes, other provisions affecting heavy truck taxation and tolling in Portland are set to proceed as planned. The legislative dynamics could shift depending on how Democrats respond to the tax referral.
Legislators may consider completely scrapping the current bill or making adjustments, a move that could face backlash from both Republicans and interest groups supporting various provisions within the bill. Representative Ed Diehl highlighted concerns regarding potential political ramifications of reversing the recently negotiated changes.
This situation illustrates the contentious nature of fiscal policy in Oregon and the intense reaction from constituents regarding tax increases, setting the stage for heightened political engagement ahead of the 2026 elections.
