Republicans in Oregon gathered more than three times the signatures needed to put a gas tax hike on the ballot, and now Democrats are scrambling as the referendum lands at the worst possible moment: with prices at the pump soaring past $5 a gallon statewide thanks to the Iran war.
The Democratic-controlled Legislature raised the state gas tax from 40 cents to 46 cents per gallon last fall, along with higher payroll taxes for transit projects and increased vehicle registration fees. They said the money would fix roads and cover a growing hole in the transportation budget. Republicans called it a cash grab and immediately launched a petition drive.
They needed 78,000 signatures. They got 250,000.
“That is a remarkable number,” said Republican strategist Rebecca Tweed.
The referendum will appear on Oregon’s May 19 primary ballot, just as gas prices are crushing American families nationwide. The national average topped $4.50 a gallon on Friday, but Oregonians are paying roughly 80 cents more than that. The price spike stems from widespread disruptions in the oil industry caused by the war with Iran started by Israel and President Donald Trump.
“It is a hell of a time to be raising gas taxes on people,” said Jeanine Holly while filling up her tank at a Portland gas station.
The timing couldn’t be worse for Democrats who have made affordability the centerpiece of their midterm messaging. The same party that’s promising to fight for working families is now asking Oregon voters to approve a tax increase that hits every time they fill their tanks.
“It’s difficult to imagine a worse situation for a gas tax increase than right now in American politics,” said Chris Koski, a professor of political science and environmental studies at Portland’s Reed College.
GOP state Sen. Bruce Starr, who helped lead the referendum campaign, has hammered Democrats on their record.
“Do Oregonians want to pay more? The answer is no,” Starr said. “Everything they’re looking at is expensive.”
If the tax increase survives the vote, Oregon would be tied with Maryland for the eighth highest gas tax in the nation when factoring in other state taxes and fees, according to the U.S. Energy Information Administration.
At the Portland gas station, the pain was personal.
Michael Burch, a 76-year-old retiree, said he used to spend $70 to fill three-quarters of his pickup truck’s tank. Now he pays $80 for just over half a tank.
“I’m sick and tired of taxes,” Burch said. “Gas is certainly dampening the spirits and the coffers of folks that aren’t as well off.”
Not everyone was ready to reject the measure outright. Hannah Coe, a 30-year-old student, said she remained undecided.
“I think I would be in favor of it if it was going to go to the things that it was saying it was going to go to, such as fixing our roads,” Coe said. “I also kind of feel like that’s just a grab at trying to get more money from the people who live here.”
Democrats spent much of last year fighting to pass a transportation funding bill, citing declining gas tax revenue as more drivers adopt electric and hybrid vehicles. They finally passed a narrower version of their plan during a special session called by Democratic Gov. Tina Kotek.
Kotek recently acknowledged the challenging timing of the referendum but has not backed away from the tax increase.
The vote will test whether Oregon Democrats can convince voters to pay more at the pump when Americans everywhere are already struggling to afford the basics.
