The second of four planned increases in the state gas tax goes into effect Jan. 1. The increase is part of House Bill 2017, the “Keep Oregon Moving” legislation passed by the Oregon Legislature in 2017.
Gas Tax Increase Schedule
- $.04 – Jan. 1, 2018
- $.02 – Jan. 1, 2020
- $.02 – Jan. 1, 2022
- $.02 – Jan. 1, 2024
For the first time, Oregon lawmakers set requirements that the Oregon Department of Transportation (ODOT) and Oregon cities and counties must meet in order to trigger the increase. The Oregon Transportation Commission sent the Legislature a report outlining how ODOT and local governments have met those requirements on Nov. 26. Two more 2-cent gas tax increases in 2022 and 2024 are also on deck — but only if ODOT meets additional accountability requirements.
The gas tax increase was tied to ODOT completing two projects to help address congestion on I-205.
ODOT worked with Oregon cities and counties to produce a website detailing the condition of the major roads and all Oregon bridges. The site grades the major roads in and through communities as good, fair, or poor so people can see what they’re getting for their increased taxes.
ODOT also had to provide a list of shovel-ready projects that could be constructed with additional funds and report on the agency’s efforts to address congestion through a number of other important projects in the Portland metro region.
Of the nearly $60 million this increase will raise, 20 percent goes to Oregon counties, 30 percent to Oregon cities and 50 percent to ODOT. ODOT will use its share ($27.9M) of the funds for:
- Highway maintenance ($1.7M)
- Bridge projects ($11.2M)
- Seismic projects ($8.4M)
- Preservation and culvert projects ($6.7M)
“Accountability ensures that our state and local transportation agencies are spending taxpayer dollars wisely,” said Gov. Kate Brown. “In this report, Oregonians can see exactly how we are building a transportation system that supports economic development, reduces congestion and related vehicle emissions, and creates more sustainable, livable communities,” Brown said.
This increase raises the Oregon gas tax from 34 to 36 cents a gallon. The federal tax is 18.4 cents a gallon. Oregon’s counties and cities are allowed to add their own local gas tax as well. At full implementation in 2024, Oregon’s gas tax will be 40 cents a gallon, still less than the gas tax in either Washington or California, according to ODOT.