Oregon Democrats found a way to improve roads. Now their gas tax goes before voters as prices soar

Oregon’s Democratic-controlled Legislature approved a gas tax increase and related fees in late 2023 to address transportation funding gaps, but the move has sparked backlash amid rising gas prices. Republicans collected over 250,000 signatures—far exceeding the 78,000 needed—to place a referendum on the May 19 primary ballot, allowing voters to decide whether to repeal the tax hike. The gas tax would rise from 40 to 46 cents per gallon, tying Oregon with Maryland for the eighth-highest gas tax in the U.S. when combined with other state fees. Republicans argue the increase worsens affordability concerns, with gas prices averaging around $4.50 per gallon nationally and higher in Oregon. The referendum comes as Democrats face pressure over economic issues, including inflation, which has driven up costs for housing, groceries, and fuel. Political strategists say the timing is unfavorable for Democrats, who have framed affordability as a key issue in the midterms. Republicans have framed the tax as part of a broader cost-of-living crisis, with state Sen. Bruce Starr calling the increases unnecessary. The referendum reflects voter frustration, with Oregon Republicans securing overwhelming support for the petition drive. The gas tax hike was part of a broader legislative package that also included higher payroll taxes for transit projects and increased vehicle registration fees. Critics argue the measures disproportionately affect working-class drivers already struggling with inflation. Meanwhile, Democrats defend the tax as essential for maintaining Oregon’s roads and transit systems amid budget shortfalls. The outcome of the referendum could influence Oregon’s political landscape ahead of the midterms, where affordability remains a dominant voter concern. With gas prices volatile due to geopolitical tensions, including the Iran war, the issue has taken on heightened urgency for Oregon voters.