SALEM, Ore. (Dec. 31, 2025) — Planned increases to Oregon’s gas tax, payroll tax and vehicle registration and title fees have been put on hold after a referendum effort met the signature threshold required to qualify for the Nov. 3, 2026, general election ballot.
The Oregon Secretary of State’s Office said Dec. 30 that it verified 163,451 valid signatures out of 191,828 submitted in support of referring the transportation funding law to voters. At least 78,116 valid signatures were required for the measure to qualify. Additional signatures submitted on Dec. 29 will not be counted, the agency said.
Supporters of the referendum, operating under the name No Tax Oregon, have said they collected well over the minimum required and publicly claimed to have gathered close to 200,000 signatures, with some organizers estimating totals exceeding that figure during the drive.
As a result of the successful petition, the tax and fee increases approved earlier this year by lawmakers will not take effect unless voters approve them at the ballot. Legislators now face a choice of whether to pursue alternative transportation funding ahead of the election or allow the issue to remain unresolved until voters decide.
The funding pause raises questions about the Oregon Department of Transportation’s budget. ODOT has warned that without new revenue, critical maintenance projects could be delayed and layoffs may be necessary, though the agency has said any layoffs would not occur until at least March, after lawmakers complete the 2026 legislative session.
Referendum follows contentious transportation debate
The referendum effort emerged after months of debate over transportation funding during the 2025 regular legislative session. Republicans had raised the possibility of referring higher gas taxes to voters as early as June, while Democrats were unable to pass a large, comprehensive transportation package before the session ended.
Following the failure of those efforts, ODOT announced potential layoffs and service reductions. Gov. Tina Kotek later called lawmakers into a special session over Labor Day weekend to address the issue. After delays, the House passed House Bill 3991 largely along party lines. The Senate vote was postponed for several weeks due to the absence of one Democratic senator whose vote was needed for passage.
The bill was projected to generate approximately $4.3 billion over 10 years through increases to the gas tax, payroll tax, and vehicle registration and title fees, among other revenue sources.
Kotek signed the bill more than a month after its passage and shortly before the deadline to do so. The timing reduced the window available for opponents to collect signatures, though the referendum campaign ultimately exceeded the required threshold.
No Tax Oregon is led by Jason Williams, director of the Taxpayer Association of Oregon, along with Senate Minority Leader Bruce Starr, R-Dundee, and Rep. Ed Diehl, R-Stayton. Supporters of the referendum have said the cost increases would worsen affordability challenges and argue voters should have the final say on higher taxes. Supporters of the law have said the funding is necessary to maintain and improve the state’s transportation system.
What happens next
Under state law, the Oregon attorney general must now draft a ballot title for the referendum. The office has 10 business days to prepare the title, which includes a caption, a brief explanation of the measure’s effect if approved or rejected, and a summary.
Once drafted, the ballot title will be open to public comment for 10 business days. A certified title will then be filed, and parties who object will have 10 days to appeal it to the Oregon Supreme Court.
Meanwhile, lawmakers are expected to address transportation funding during or ahead of the 2026 legislative session, which begins Feb. 2. The outcome of those discussions could determine whether additional legislative action is taken before voters weigh in on the referendum next year.
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