In an effort to increase funding to the state’s transportation system, Oregon will implement the second of four planned increases to its gas tax on Jan. 1, 2020, kicking off the new year with a 2 cents hike.
Such increases were initially called for in 2017, as part of the Keep Oregon Moving legislation. When passed, they designated a 10 cents increase spaced out over six years. The Oregon Department of Transportation (ODOT) and Oregon’s various cities and counties were required to meet certain accountability requirements to allow for these increases.
In this case, those requirements included the completion of two I-205 projects, which included paving efforts, lane construction, and new signage. Other requirements included the creation of a website detailing major road and bridge conditions to demonstrate what residents are getting in return for the tax, as well as a list of projects ready to go to reduce congestion.
“The Commission is proud of the excellent work ODOT has done to date to implement the 2017 transportation legislation,” Oregon Transportation Commission Chairman Robert Van Brocklin said. “The additional funding that we will see beginning next January as a result of ODOT’s work will allow us to make important new investments, including projects to reduce Portland-area traffic congestion. It will also allow us to build new and preserve existing transportation investments in every region of the state.”
Currently, ODOT predicts the tax increase will raise nearly $60 million. Of this, 20 percent will go to Oregon counties, 30 percent to cities, while the other 50 percent will be given to ODOT. ODOT’s $27.9 million share will include $1.7 million for highway maintenance, $11.2 million for bridge projects, $8.4 million for seismic projects, and $6.7 million for preservation and culvert projects.
In 2024, when the last tax increase goes into effect, Oregon’s gas tax will reach 40 cents per gallon.