Gov. Kotek proposes raising gas and payroll taxes to avoid ODOT cuts

SALEM, Ore. (KOIN) — It’s full steam ahead for Governor Tina Kotek’s plan to raise the gas tax and a payroll tax to help pay for Oregon’s roads.

There is a special legislative session set for a week from Friday to vote on her proposals to avoid laying off hundreds of Oregon Department of Transportation workers and cutting services.

On Wednesday, staff from the governor’s and ODOT’s offices held a briefing going into more details about the plan.

The state gas tax would go up by 6 cents, to 46 cents per gallon. A road user charge for existing electric vehicles would start going into effect in 2027 — new EVs and hybrids would pay starting in 2028, but it would not apply to commercial delivery vehicles.

Increases in title and registration fees for vehicles have also been proposed. And the payroll tax taken out of people’s checks to help fund transit will go up from 0.2% to 0.2%.

Another piece of the new transportation bill would get rid of mandatory tolling plans on some of Oregon’s main roads.

Lawmakers will hold a public hearing in Salem on Monday afternoon at the State Capitol. The public hearing starts at 3 p.m. on August 25 in the Hearing Room F. In addition, the Oregon State Legislature has more information about how to give testimony, whether that’s in person, via remote or in writing.

The special session starts on August 29, which is the start of Labor Day weekend.