Oregon Increase to Gas Tax, Payroll Tax, and Vehicle Registration Fees Referendum
Oregon Ballot Measure - Measure 302
Election: Nov. 3, 2026 (General)
Outcome: Pending
Categories:
Oil and GasTaxes
Summary
The referendum would repeal five sections of House Bill 3991 (HB 3991), which was passed during the special legislative session in September 2025. With the qualification of the veto referendum, the targeted provisions of the bill are on hold until the election. The remainder of the bill took effect on January 1, 22026.[1]
The referendum would repeal the increase to the state's gas tax, which would increase from $0.40 to $0.46 under HB 3991. It would also repeal the vehicle title fee increase ($77 increased to $216) and the following increases to state registration fees:[1]
Passenger vehicles: An increase from $43 to $85,
Utility trailers or light trailers: An increase from $63 to $105,
Mopeds and motorcycles: An increase from $44 to $86, and
Low-speed vehicles: An increase from $63 to $105.
It would also repeal the increase from 0.1% to 0.2% for the transit payroll tax. The Legislative Revenue Office estimated the tax, registration, and fee increases would generate $791 million in the 2025-27 budget cycle.
Measure Text
83rd OREGON LEGISLATIIIE ASSEMBLY--2O25 Special Session
Enrolled
House Bill 3991
Sponsored by JOINT SPECIAL SESSION COMMITTEE ON TRANSPORTATION FUNDING
CIIAPTER
AN ACT
Relating to transportation; creating new provisions; amending ORS 171.861, 184.620, 184.623, 184.659,
184.665,295.103,319.010,319.020,319.390,319.520,319.530,319.550,319.671,319.700,319.883,
319.885,319.915,320.550,366.506,366.772,366.805,367.095,377.841,383.009,801.041,801.042,
803.090, 803.420, 803.422, 803.445, 810.530, 818.225, 818.400, 823.012, 823.023, 823.027, 823.085,
825.005, 825.104, 825.t4t, 825.250, 825.326, 825.450, 825.474, 825.476, 825.480, 825.492, 825.555 artd
825.990 and section 6, chapter 491, Oregon Laws 2019; repealing ORS 319.665,319.890,383.150
aad 825.486 and section 2, chapter 428, Oregon Laws 2019; prescribing an effective date; and
prowidiug for revenue raising that requires approval by a three-fifths majority.
House Bill 3991 was passed by the Legislative Assembly containiog 102 sections. This text was
filed as a referendum on the following portions of HB 3991, pursuant to Article W, sectioo 1 (3), of
the Oregon Constitution.
Be It Eu&cted by the People of the State of Oregon:
F'UEL TAXES AND BEGISTR,ATION AND TITLE F'EES
SECTION 16. ORS 319.020 is amended to read:
319.020. (1) Subject to subsectious (2) to (4) of this section, in addition to the taxes otherwise
provided for by law, every dealer engaging in the dealer's own name, or in the name of others, il
the first sale, use or distribution of motor vehicle fuel or aircraft fuel or withdrawal of motor vehicle
fuel or aircraft, fuel for sale, use or distribution within areas in this state within which the state
lacks the power to tax the sale, use or distribution of uotor vehicle fuel or aircraft fuel, shall:
(b) Except as provided in ORS 319.270, pay a license tax computed on the basis of [34] 46 cents
per gallon on the first sale, use or distribution of such motor vehicle fuel or aircraft fuel so sold,
used, distributed or withdrawn as shown by such statement in the manner and within the tiEe provided in ORS 319.010 to 319.430.
SECTION 17. ORS 319.530 is amended to read:
319.530. (1) To compensate this state partially for the use of its highways, an excise tax hereby
is imposed at the rata of li4l 4A cetrts per gallon on the use of fuel iu a motor vehicle.
SECTION 18. ORS 803.420 is amended to read:
803.420.
(6) The registration fees for each year of the registration period for vehicles subject to biennial
registration are as follows:
Enrolled House Bill 3991 (HB 3991-En) Page 1
(a) Passenger vehicles not otherwise prowided for in this section or ORS 821.320, t$431 $85.
(b) Utility trailers or light trailers, as those terms are defined by rule by the department, [$63J
$r05.
(c) Mopeds and motorcycles, IW $8.
(d) Low-speed vehicles, [$63] $105.
SECTION f9. ORS 803.090 is amended to read:
803.090. (1) Except as provided in subsection (2) of this section, the fee to issue a certifrcate of
title under ORS 803.045 or 803.140, to transfer title under ORS 803.092, to issue a duplicate or replacenent certificate of title under ORS 803.065 or to issue a new title due to name or address
change under ORS 803.220 is as follows:
(b) For a vehicle title for trailers eligible for permanent registration under ORS 803.415 (1) and
motor vehicles with a gross vehicle weight rating over 26,000 pounds, excluding motor homes, $90.
(c) For a vehicle title for vehicles other than those vehicles described in paragraph (b) of this
subsection, l$7V $216.
TRANSIT
SECTION 24, ORS 320.550 is amended to read:
320.550. (1) As used in this section:
(a) "Employer" has the meaning given that term in ORS 316.162.
(b) "Resident of this state" has the meaning given that term in ORS 316.027
(c) "Wages" has the meaning giveu that term in ORS 316.162.
(2) A tax is imposed at the rate of lonz-tenthl two-teuths of one percent of the wages of an
employee who is:
(a) A resident of this state, regardless of where services are performed.
(b) Not a resident of this state, for services performed in this state.
(10) Besidents subject to the tax imposed under this section on wages earned outside this state
from an employer not doing business within this state shall report and pay the tax in an amount
not to exceed lona-tenth) two-tenths of one percent of the wages earned outside this state, and at
the time and in the manner, as determined by the Department of Revenue by rule.
Earolled House Bill 3991 (HB 3991"8n) Page 2
Resources
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