A recent January poll conducted by Public Opinion Strategies, found that 80% of Oregonians oppose increasing the Gas Tax while 79% of Oregonians favor cutting taxes to make Oregon more affordable. The same poll showed that Oregonians see the cost of living as the top issue they face with 56% of Oregonians saying that taxes are too high. The same poll showed 70% favor eliminating state income taxes on tips and overtime pay, and 56% of Oregonians say that taxes are too high. Oregon ranks as the 10th most expensive state to live in, with the 5th highest individual income tax rate. Only California, Hawaii, New York and New Jersey have higher individual income tax rates.

Oregon Republicans, lead by Senate Republican Leader Daniel Bonham (R-The Dalles), announced a way to fund critical state services without raising taxes by stop wasting money. Democrats immediately unveiled their grand Transportation plan framework. Republicans response to House and Senate Democrats’ draft proposal to make Oregonians pay billions more in taxes for ODOT’s failures is insensitive to Oregonians.

The Democrat proposal raises $1.9 billion in new taxes and fees. The proposal increases gas taxes by 20 cents (a 50% increase), increases taxes on truckers by nearly 17%, creates a new tax on tires, increases payroll taxes, and more. Read all the tax hikes on Oregon Transportation Reinvestment Package (TRIP) 2025 – Starting Point.

Representative Shelly Boshart-Davis (R-Albany), Vice Chair of the Joint Committee on Transportation says, “It threatens to increase or create over a dozen taxes to take billions more from Oregonians at a time when too many are struggling with some of the highest costs of living in history. I maintain that we need serious reforms at ODOT before we even consider taxing you more.”

“The Democrats’ tone-deaf proposal throws more money at a system that has repeatedly failed to recognize that its core mission is to provide safe and reliable roads and bridges,” said House Republican Leader Christine Drazan (R-Canby). “A dozen new taxes and fees is a slap in the face to all Oregonians that simply can’t afford to pay more for less.”

“Since the beginning of this session, House Republicans have pressed ODOT on budgeting errors, incomplete projects, and mishandling of tax dollars,” said Rep. Shelly Boshart-Davis. “It’s shocking that in spite of Oregonians’ resounding rejection of the tire tax proposal, Democrats are doubling down on this tax at a time when families are already struggling to make ends meet.” Boshart-Davis and Senator Bruce Starr (R-Rural Polk & Yamhill) serve on the Joint Committee on Transportation, appeared on the Oregon DOGE podcast to talk about some of the problems at ODOT and the need to provide real oversight.

It wasn't until ODOT testified that the committee was aware of the budget error in 2023 that resulted in over forecasting federal funding by $1.1 billion, which they used to front load projects that had to be delayed. Now they are requesting these projects get funded, however the Governor's budget is for $1.75 billion, and it takes $352 million to maintain core services.

Oregon DOGE discussed possibilities for ODOT reform including:

• Bike lanes and paths take up $70.5 million that doesn't move traffic.
• ODOT has it’s own Social Equity and Civil Rights Budget of $29.8 million for 30 employees (ORS 200.190 to emerging small business. Why is these not centralized in DAS?
• ODOT’s budget includes cleanup homeless camps.
• Sidewalks to nowhere. A settlement from 2017, AOCIL v. ODOT, awarded $18 million for curb ramps and traffic signals on the entire state highway system installing curb ramps where there is no sidewalk and opens into fields. Then Federal laws changed for handicap ramps and if not within one-eighth of an inch, they have to be redone.
• SB 715 adds $10 million for a metro high-speed rail.
• The Clean Truck temporary rule went into effect January 1, 2025, which requires converting to electric. There are currently 12 electric long-haul trucks in Oregon. The technology and infrastructure won't support even 100 trucks, which is equal to all the houses in Eugene. It would take building 55 power station per week, which ODOT lacks funding for. Boshart-Davis has introduced a 2-year waiting period in HB 3119.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

Transportation affects everything you buy and where you go. The proposed new taxes will also impact the economy, and future developments. It will raise the cost on Governor Kotek's affordable housing plans. A recent study highlighted how other states are actively poaching Oregon businesses by offering more favorable regulatory environments. High taxes and burdensome labor mandates are among the factors driving companies and their jobs out of state. Additionally, as housing becomes less affordable due to inflated building costs, more Oregonians are leaving for states with lower living expenses


--Donna Bleiler

Post Date: 2025-04-05 14:55:23

Last Update: 2025-04-05 18:03:45