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Tax hikes in proposed Oregon transportation package would eventually raise more than $2 billion per year, new report says

  • Oregon lawmakers proposed House Bill 2025, a transportation funding package expected to generate over $2 billion annually by 2034 through new and increased taxes and fees.
  • The bill aims to address longstanding underfunding of road maintenance and infrastructure by phasing in tax hikes including a 15-cent gas tax increase by 2028, amid ongoing debate over its cost and tax fairness, especially for heavy trucks.
  • HB 2025 includes a gas tax increase from 40 to 50 cents on Jan. 1, 2026, expanded vehicle registration and title fees, a transfer tax on car sales, a transit payroll tax hike, and a new per-mile charge for electric vehicles.
  • Senate Democrats labeled the revenue estimates a draft subject to change, while opponents warn families would face financial strain and criticize lack of transparency; a PAC formed to oppose gas tax hikes aims for a 2026 ballot referral.
  • If enacted, the bill would fund ODOT operations, local road services, and infrastructure projects like the I-5 Rose Quarter upgrade, potentially preventing up to 1,000 ODOT layoffs expected after mid-2025 due to insufficient funds.
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Oregon road workers urge passage of transportation bill, others warn of financial burden

Rural and urban transportation workers pleaded with the Oregon Legislature’s Joint Transportation Committee to pass a massive funding package that Democrats say would solve the Oregon Department of Transportation’s budget shortfalls and stabilize the state’s deteriorating road infrastructure. In a…

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  • 71% of the sources are Center
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The Oregonian broke the news in Portland, United States on Friday, June 13, 2025.
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