It is now May, and the legislature has now been in session for four months with roughly seven weeks remaining. Constitutionally, they must adjourn by June 29th, and an end date during that fourth week of June seems likely. While much has transpired already, perhaps the most intense days lie ahead. The May revenue forecast is set to take place on the 14th and will serve as the benchmark for which budgets for the 25-27’ biennium will be set. It is unclear what the outlook will be, but many expect revenue to be down, which will make budgeting for state agencies and state investment much more challenging. Since prior to the session, a transportation package has also been set as a priority. While it remains to be seen whether enough agreement can be reached between the two parties as well as internally within the respective parties, an initial proposal has been released. It contains:
- A 50% increase in Oregon’s 40-cent gas tax, phased in by 2032. This tax will then continue to increase every year without a vote of the Legislature. As of January 2025, only two states had gas taxes at or above 60 cents: California and Illinois.
- A 1% sales tax on all cars sold in Oregon, new and used.
- A 60% increase (0.5% to 0.8%) in the “privilege” tax paid by auto dealers on new car sales.
- A $90 increase to vehicle titling fees, nearly doubling fees for most passenger cars and trucks.
- An 80% increase in the tax that all workers in Oregon pay on their wages. This tax, which will go from 0.1% to 0.18%, is used for public transit, regardless of whether transit options are available to those workers.
- A brand, new 3% sales tax on tires.
Some major bills we have been tracking and working on your behalf include: