Oregon Voters to Decide on Gas Tax Repeal Amid Record-High Prices
The $0.40 Proposition
Oregonians will head to the polls on May 19, 2025, to vote on a referendum that could repeal a recently passed gas tax increase. The measure, backed by a Republican-led petition drive, targets a Democratic bill that raised the state’s gas tax from 40 to 46 cents per gallon.
The Backdrop: War and Rising Prices
The referendum lands as U.S. gasoline prices average over $4.50 per gallon nationally—a surge lawmakers attribute to the ongoing Iran war initiated by Israel and former President Donald Trump. This has made the timing of Oregon’s tax hike particularly painful for drivers.
"Do Oregonians want to pay more? The answer is no."
— Republican state Sen. Bruce Starr, referendum campaign leader
A Single Issue Rises Above the Rest
Democratic Gov. Tina Kotek acknowledged the difficulty of the moment but stressed that the root cause of high gas prices is the war with Iran, not the state’s new tax. Meanwhile, Democratic state Rep. Paul Evans admitted his party lost control of the narrative:
"The messaging got away from us, and it became focused upon the price instead of the value."
— Democratic state Rep. Paul Evans
The Tax in Context
At 46 cents per gallon, Oregon’s gas tax would tie with Maryland for the eighth highest in the nation. The revenue was intended to fund road improvements and address a transportation budget shortfall.
Mixed Feelings at the Pump
Voters interviewed expressed a sharp divide: some cited financial strain and opposed any new tax, while others voiced conditional support—provided the money actually goes to fixing roads.
The Road Ahead
The May 19 primary ballot will offer a direct verdict: a vote to uphold the tax, or a vote to repeal it, sending lawmakers back to the drawing board.