Originally approved by 52 percent of voters in May 2016, the 4-year, 10 cents per gallon city gas tax has outperformed revenue projections. Funds are split between road maintenance and bike and pedestrian projects.
A controversial new sales tax on motor vehicles in a state with no sales taxes survived a court challenge. As a result, Oregon consumers will have another reason to consider purchasing or leasing an electric vehicle: receiving up to a $5,000 rebate.
After Gov. Kate Brown signs the comprehensive funding package, Oregon will be the eighth state this year to approve legislation to increase its gas tax and the first ever to add a bike tax to fund bike and pedestrian infrastructure.
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.