Oregon Voters Reject Gas Tax Increase

Oregon voters on Tuesday rejected a gas tax increase passed last year by Democratic lawmakers. The referendum, known as Measure 120, repealed the 6-cent-per-gallon increase and a series of fee hikes approved by the Democratic-controlled Legislature last fall.

Background on the Tax Measure Democrats had raised the state gas tax by 6 cents a gallon and increased a series of fees to help pay for road improvements and address a projected decline in transportation revenue. The gas tax is the largest funding source for fixing roads and upgrading highways.

Republicans responded by launching a referendum campaign that gathered more than three times the number of signatures required to place the measure on the ballot. The vote occurred as gas prices rose nationwide.

Bruce Starr, who helped lead the referendum campaign, said he was “not surprised at all that Oregonians have rejected a completely unpopular tax increase.”

““Oregon voters will not be ignored. Oregon taxpayers will not be ignored.””

Democratic Gov. Tina Kotek and U.S. Sen. Jeff Merkley easily won their primaries Tuesday, while state Sen. Christine Drazan won the GOP gubernatorial primary to face Kotek. In Oregon’s 5th Congressional District, incumbent U.S. Rep. Janelle Bynum won the Democratic primary and will face Republican Patti Adair.

The legislation was Democrats’ answer to help Oregon’s transportation budget as the state projects a decline in gas tax revenue from the shift to more fuel-efficient, electric and hybrid vehicles. Democrats said the root cause of the spike in gas prices was President Donald Trump’s decision to go to war with Iran.

Late Tuesday afternoon, a steady stream of voters arrived at a Portland library serving as a ballot drop site. Even in the progressive hub, Democratic voters were divided on the measure. “I feel like the roads need to be repaired as a bicyclist, so I voted yes,” said Gail Watnick, a 56-year-old who arrived by bike wearing a bright yellow helmet.