Oregon's $3 Billion Transportation Funding Legislation Has a Tax for Almost Everyone

The package, which doesn't tax walking and running shoes, went to the legislature on June 30. It includes a ten cents per gallon gas tax, a 0.10 percent payroll tax, a $15 tax on new bikes costing at least $200, and a potential toll on I–205.

3 minute read

July 7, 2017, 8:00 AM PDT

By Irvin Dawid


Mount Hood Clackamas

David Herrera / Flickr

"The plan will raise nearly $3 billion in taxes and fees over the next eight years," reports Pat Dooris for KGW–TV. In addition to the gas tax, bike tax, payroll tax, and potential toll, HB 2017 raises motor vehicle registration fees and adds "a tax on car sales that will fund rebates for purchases of electric cars," reports Gordon R. Friedman for The Oregonian, who indicates that a "tentative deal" had been reached on June 28 between Democratic Gov. Kate Brown and the Democratic-controlled legislature.

"The payroll tax would fund a statewide account for public transportation," adds Dooris. "It would help push buses into more rural areas and allow small towns to create more robust public systems, according to Rep. Cliff Bentz, a Republican from Ontario and State Senator Lee Beyer, (D) Springfield."

Gas tax revenues, which can't be spent on public transit due to constitutional restrictions, would pay for road and bridge projects. Highway widenings are notably mentioned to reduce congestion, including adding a lane in each direction to "Interstate 205 and the Abernethy Bridge which carries I-205 across the Willamette River in Oregon City," adds Dooris.

“More likely we’re probably looking at some tolling on 205 as a way to have to do that,” said Beyer. “That decision has not been made but it’s a likelihood. It’s a very expensive projects and  within existing money we don’t have money to do that."

The Abernethy Bridge would be replaced, according to Friedman of The Oregonian. He provides more details on how the bipartisan consensus was reached on the bill and a related issue, the state's low-carbon fuel standard, or "clean fuels" law. 

Future of Landmark Road Usage Charge?

OReGO, the nation's only actual vehicle-mile-traveled fee (called a road usage charge) program, is now two-years old, having begun operation on July 1, 2015 for up to 5,000 volunteer motorists who are charged 1.5 cents per mile driven, and credited the state gas taxes they paid at the pump. California and Colorado have completed trial programs, and Washington and Hawaii are expected to start pilots soon.

HB 2017 "would set up a system to charge vehicles that do not run on gas, a fee based on the miles they travel each year," adds Dooris, suggesting OReGO could morph into a mandatory program only for electric vehicles that lack gas tanks. If so, this would be a more equitable way to charge EV motorists than is currently done by many states that charge a flat, annual registration fees of $100–$200 for electric vehicles [see EV fees] and many even for hybrid vehicles even though they are not plug-in vehicles.

If the transportation legislation is passed in its current form and signed by Gov. Brown, Oregon will become the eighth state (after West Virginiathis year to increase its gas tax. Perhaps more significantly, it will also add to the "firsts" for the Beaver State when it comes to state transportation funding:

  • First to charge a gas tax in 1919.
  • First to operate a road usage charge in 2015.
  • First to charge a bike tax.

Hat tips to AASHTO Daily Transportation Update and Elliot Njus, The Oregonian.

Thursday, June 29, 2017 in KGW

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

Skyscrapers in Jersey City.

New Jersey’s second-largest city bans standalone data centers

Jersey City will continue to allow co-location facilities, such as those meant for research institutions that store their own data.

September 4, 2026 - The Cool Down

A New Jersey train approaches people waiting at the station.

Amtrak not solely to blame for New Jersey commuter rail's unreliability, report finds

A new study from the Garden State Initiative found that NJ Transit’s budget grew 20% across a 4 year period, but reliability declined significantly over the same period.

September 15 - Mass Transit

A tall, gray power plant billows smoke into a blue sky.

EPA erases limits on planet-warming pollution from power plants

Under Monday’s plan, power plants would still have some limits on how much mercury, arsenic and other contaminants they can emit.

September 15 - New York Times

A white RAPID bus. The lower half is light blue, and says RAPID in purple text. The bus is half visible, appearing from the left side of the image.

Phoenix announces new on-demand transit service, more frequent RAPID buses

Both new services will launch in October, and are part of Phoenix's Project Effective Access Solutions for Easing Congestion.

September 15 - KJZZ

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.