Legal Analysis Says Repeal of Gov. Kotek’s Transportation Bill Must Go to Voters

SALEM, Ore. (Jan. 22, 2026) — Gov. Tina Kotek admitted Tuesday that repealing House Bill 3991 must be referred to Oregon voters rather than overturned by the Legislature, following updated legal analysis concluding that a legislative repeal would be unconstitutional.

The Oregon Legislature previously relied on legal guidance indicating the transportation funding law could be repealed through legislative action. However, a new analysis determined that because key provisions of the measure were enacted in a way that triggers constitutional protections, any repeal must go back to voters.

“Two weeks ago, I was clear with Oregonians about transportation: we must redirect, repeal, and rebuild,” Kotek said in a statement. “The legislature and the constitution will determine how and when repeal occurs. My responsibility remains the same: keep our roads safe, our economy moving, and help deliver a bipartisan long-term transportation solution.”

House Bill 3991, passed during a 2025 special session, created what lawmakers described as the largest tax increase in Oregon history, including hikes to the state gas tax, higher vehicle registration and title fees, and a temporary doubling of the payroll tax that funds public transit. Supporters said the package was needed to stabilize road maintenance and operations statewide, while critics argued it would increase costs for households and businesses already facing inflation pressures.

Opposition to the bill quickly coalesced into a statewide campaign known as No Tax Oregon, a grassroots movement that launched a referendum effort to send the law to voters. Organizers began collecting signatures in the fall of 2025, targeting the bill’s tax and fee increases, including the gas tax hike and transit payroll tax.

The group reported gathering well over the number of signatures required to qualify a referendum, triggering an automatic pause in several parts of the law while state elections officials verify the petitions. As a result, planned increases to fuel taxes, vehicle fees and the payroll tax have not taken effect.

Supporters of HB 3991 say blocking the funding threatens long-term road safety, infrastructure reliability and transit service levels. Opponents counter that voters should have the final say on tax increases and argue lawmakers moved too quickly in passing the measure.

Kotek said she remains focused on working with lawmakers from both parties on a long-term transportation package, while acknowledging that the path forward now rests with voters.

“The legislature and the constitution will determine how and when repeal occurs,” she said, adding that her administration’s priority remains keeping roads safe and the economy moving.