Oregon Referendum 120, Increase to Gas Tax, Payroll Tax, and Vehicle Registration Fees Referendum (May 2026)

Oregon Referendum 120
Election date May 19, 2026
Topic Business taxes and Fuel taxes
Status On the ballot
Type Veto referendum	Origin Citizens

Oregon Referendum 120, the Increase to Gas Tax, Payroll Tax, and Vehicle Registration Fees Referendum, is on the ballot in Oregon as a veto referendum on May 19, 2026.

A "yes" vote upholds five sections of House Bill 3991 (HB 3991) related to tax and fee increases, including increases to the state's gas tax from $0.40 to $0.46, payroll tax for transportation from 0.1% to 0.2%, and vehicle registration and title fees, with revenue dedicated to the State Highway Fund for transportation funding.

A "no" vote repeals five sections of HB 3991 related to tax and fee increases, including increases to the state's gas tax from $0.40 to $0.46, payroll tax for transportation from 0.1% to 0.2%, and vehicle registration and title fees, with revenue dedicated to the State Highway Fund for transportation funding.

Overview

What would Referendum 120 do?

See also: Text of measure

A veto referendum is a citizen-initiated ballot measure that asks voters whether to uphold or repeal an enacted law. If a majority of voters vote "yes" and uphold the law, the five sections of House Bill 3991 (HB 3991) targeted by Referendum 120 would increase the state's gas tax, vehicle title fees, and transit payroll taxes to increase state transportation funding. HB 3991 was passed during the special legislative session in September 2025 along party lines, with the Democratic majority supporting the measure and Republicans opposing it. With the qualification of the veto referendum, the targeted provisions of the bill are on hold until the election. The remainder of the bill took effect on January 1, 2026.

How would House Bill 3991 increase transportation and vehicle taxes and fees?

House Bill 3991 would increase the state's gas tax from $0.40 to $0.46. It would also increase vehicle title fees ($77 increased to $216) and state registration fees:

• Passenger vehicles: An increase from $43 to $85,
• Utility trailers or light trailers: An increase from $63 to $105,
• Mopeds and motorcycles: An increase from $44 to $86, and
• Low-speed vehicles: An increase from $63 to $105.

HB 3991 would increase the state transit payroll tax from 0.1% to 0.2%. The transit payroll tax is paid by employers and is used to fund public transit improvements. Local transit districts, such as TriMet (Portland area) and Lane Transit District, have their own local transit payroll taxes in addition to the state's. The Legislative Revenue Office estimated the tax, registration, and fee increases would generate $791 million in the 2025-2027 budget cycle.

The revenue would be deposited in the State Highway Fund and distributed 50% to the Oregon Department of Transportation, 30% to counties, and 20% to cities.

Who supports and opposes Referendum 120?

See also: Support of a "yes" vote and Support of a "no" vote

No Tax Oregon is leading the campaign in support of a "no" vote on Referendum 120 to repeal the law. The petition was filed by state Sen. Bruce Starr (R-12), state Rep. Ed Diehl (R-17), and Jason Williams, director of the Taxpayer Association of Oregon. Williams said, "With nearly 200,000 signatures, this is the voice of no new taxes without a vote of the people. Just let us speak – let us have a say – let us have a vote. That’s all we ask."

Ballotpedia has not identified a campaign in support of a "yes" vote on Referendum 120 to uphold the law. During the legislative process for HB 3991, David Carr, executive director of Sunset Empire Transportation District, submitted the following support for the bill: "State funding represents nearly 60% of our operating budget. Reductions would result in unavoidable service cuts, disproportionately harming disabled and transit-dependent riders. Conversely, timely and increased state funding could offset federal delays, preserve essential services, and enable the restoration of routes lost during previous cutbacks. A meaningful increase would also help us move closer to pre-COVID service levels and better serve unserved areas of our rural county."

On January 7, 2026, Gov. Tina Kotek (D), who called for the special session on transportation funding and signed HB 3991 on November 7, 2025, announced she would ask the state legislature to repeal HB 3991. Gov. Kotek said, "Leaving the law in place would require ODOT to absorb implementation costs without new resources, thus prolonging uncertainty for communities and the transportation agency and further delaying progress toward a durable solution."

Senate Republican Leader Bruce Starr (R) responded, saying, "Governor Kotek is not repealing this bill because she suddenly discovered it was bad policy. She is doing it because Oregonians stood up, made their voices heard, and forced her to make a political decision to save face."

Text of measure

Full text

The full text of Referendum 120 is below:

Support of a "yes" vote

A "yes" vote would uphold the law.

Supporters

Organizations

• Oregon Fire Chiefs Association
• Sunset Empire Transportation District

Arguments

• Chief Brian Stewart, Oregon Fire Chiefs Association; Chief Ben Stange, Fire and EMS Chapter of SDAO; and Karl Koenig, Oregon State Fire Fighters Council: "In short, ODOT crews and their work are part of Oregon’s emergency response system. Ensuring that ODOT has stable and adequate funding to maintain its staffing, equipment, and round-the-clock operations is critical to protecting Oregonians and our responders."
• David Carr, executive director of Sunset Empire Transportation District: "State funding represents nearly 60% of our operating budget. Reductions would result in unavoidable service cuts, disproportionately harming disabled and transit-dependent riders. Conversely, timely and increased state funding could offset federal delays, preserve essential services, and enable the restoration of routes lost during previous cutbacks. A meaningful increase would also help us move closer to pre-COVID service levels and better serve unserved areas of our rural county."

Support of a "no" vote

No Tax Oregon is leading the campaign in support of a "no" vote on the measure to repeal the law.

Supporters

Officials

• State Sen. Bruce Starr (R)
• State Rep. Ed Diehl (R)

Organizations

• Taxpayer Association of Oregon

Arguments

• Rep. Ed Diehl (R-17): “We’re paying for electric vehicle car chargers. We have a social equity office. We have climate justice initiatives. We have hundreds of millions of dollars in reserves on projects that will never transpire as currently designed. It’s a waste, but the Legislature is prioritizing those things over what the Oregon people want.”
• Jason Williams, director of the Taxpayer Association of Oregon: "With nearly 200,000 signatures, this is the voice of no new taxes without a vote of the people. Just let us speak – let us have a say – let us have a vote. That’s all we ask."
• Duke Shepard of Oregon Business & Industry: "A doubling of the statewide payroll tax for transit does not meet this threshold. Oregonians are struggling with high costs of living and increasing this payroll tax will exacerbate this problem. Job reports and economic forecasts are not good…and getting worse. Now is not the time to impose increased costs on Oregonians, particularly when nothing is done to address issues of utilization and ridership."
• Anthony K. Smith, director of NFIB Oregon: "For small businesses, the cost pressures of transportation fuel far outweigh challenges relating to transportation infrastructure. The 6-cent per gallon gas tax increase proposed by HB 3991 would add to that pressure significantly. The various other taxes and fees proposed by the bill, including the proposed doubling of the current statewide payroll tax, would also impose negative financial consequences for small business budgets."

Campaign finance

See also: Ballot measure campaign finance, 2026

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through April 1, 2026. The deadline for the next scheduled reports is September 29, 2026.

Right to Vote on the Gas Tax PAC registered as a political action committee (PAC) to sponsor Referendum 120. In Oregon, a "no" vote overturns the targeted legislation, meaning the campaign behind the veto referendum supports a "no" vote. Right to Vote on the Gas Tax PAC reported $243,044.62 in contributions. Ballotpedia has not identified a committee registered in support of a "yes" vote.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$103,962.00	$139,082.62	$243,044.62	$59,890.20	$198,972.82
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$103,962.00	$139,082.62	$243,044.62	$59,890.20	$198,972.82

Opposition

The following table includes contribution and expenditure totals for the committee in support of the measure.

Committees in support of Referendum 120
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Right to Vote on the Gas Tax PAC	$103,962.00	$139,082.62	$243,044.62	$59,890.20	$198,972.82
Total	$103,962.00	$139,082.62	$243,044.62	$59,890.20	$198,972.82

Donors

The following were the top donors who contributed to the support committee.

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Taxpayers Association of Oregon	$5,000.00	$100,527.34	$105,527.34
Frank Timber Resources, Inc.	$20,000.00	$0.00	$20,000.00
Jackson Food Stores	$15,000.00	$0.00	$15,000.00
Blane T. Belveal	$10,000.00	$0.00	$10,000.00
Camp & Poole Distributing LLC	$10,000.00	$0.00	$10,000.00

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

House Bill 3991 (2025)

Gov. Tina Kotek (D) called a special legislative session that began on August 29, 2025, and adjourned on October 1, 2025, to address emergency funding for the transportation system. House Bill 3991 (HB 3991) was passed on September 29 during the special session. HB 3991 passed in the Oregon House of Representatives by a vote of 36-12, largely along party lines with one Republican joining the Democratic majority. It passed in the Oregon State Senate by a vote of 18-11, also along party lines. Gov. Kotek signed the bill on November 7, 2025. The vote breakdown is below.

 Oregon House of Representatives

Voted on September 1, 2025

Votes Required to Pass: 31
	Yes	No	NV
Total	36	12	12
Total %	60.0%	20.0%	20.0%
Democratic (D)	36	1	0
Republican (R)	0	11	12

Oregon State Senate

Voted on September 29, 2025

Votes Required to Pass: 16
	Yes	No	NV
Total	18	11	1
Total %	60.0%	36.7%	3.3%
Democratic (D)	18	0	0
Republican (R)	0	11	1

HB 3991 enacted several increases to transportation taxes and fees, including a $0.06 increase to the state's gas tax, a $139 increase to the state's title fee for passenger vehicles, vehicle-dependent increases to registration fees, and a 0.1% increase to 0.2% for the state employee payroll tax. The law also specified that the revenue from the increased tax and fees would be allocated as follows:

• 50% to the Department of Transportation,
• 30% to counties, and
• 20% to cities.

The increased taxes and fees targeted by the veto referendum, which were set to take effect on January 1, 2026, are on hold until after the election. The remainder of the bill, not challenged by the veto referendum, took effect on January 1, 2026. The provisions of the bill that took effect include auditing requirements, changes to the membership and oversight of various transportation committees, repeal of the voluntary road usage charge program, changes to the annual registration fee surcharge based on miles per gallon for passenger vehicles, repeal of the toll program, and heavy vehicle tax increases.

On January 7, 2026, Gov. Kotek announced she would ask the state legislature to repeal HB 3991. Gov. Kotek said, "Leaving the law in place would require ODOT to absorb implementation costs without new resources, thus prolonging uncertainty for communities and the transportation agency and further delaying progress toward a durable solution."

Senate Republican Leader Bruce Starr (R) responded, saying, "Governor Kotek is not repealing this bill because she suddenly discovered it was bad policy. She is doing it because Oregonians stood up, made their voices heard, and forced her to make a political decision to save face."

Oregon Department of Transportation financial report, 2025

Net revenue and expenditures

Below is a chart showing the state Department of Transportation's net revenue and total expenditures from 2019 to 2025. For fiscal year 2025, the net revenues totaled $2.91 billion, and the total expenditures totaled $2.49 billion.

Vehicle-related tax collections

For fiscal year 2025, the Oregon Department of Transportation reported receiving $1.65 billion in net vehicle-related tax collections, including gas taxes, weight-mile taxes, and vehicle registration taxes. The chart below shows the net vehicle-related tax collections by type from 2019 to 2025.

Veto referendums in Oregon

Since 2000, Oregon voters have decided on seven veto referendums, upholding five laws and repealing two. Oregon voters upheld a law in 2000 related to transportation that levied a $0.29 per-gallon diesel fuel tax and increased registration fees on heavy vehicles.

Veto referendums in Oregon, 2000–2024

Measure	Year	Description	Outcome
Measure 101	2018	Uphold certain assessments/taxes on healthcare insurance and the revenue of certain hospitals to provide funding for Medicaid expansion	Upheld
Measure 88	2014	Uphold making four-year driver licenses available to those who cannot prove legal presence in the United States	Repealed
Measure 66	2010	Uphold increasing taxes on incomes at and above $250,000 for households and $125,000 for individual filers	Upheld
Measure 67	2010	Uphold increasing $10 corporate minimum tax and profit tax and establishing $150 minimum business tax	Upheld
Measure 30	2004	Uphold creating a surcharge on the state's income tax and increasing the minimum state corporate tax	Repealed
Measure 90	2000	Uphold allowing regulated utilities to set rates that allow for returns on their undepreciated investments in retired property	Upheld
Measure 82	2000	Repeal the weight-mile tax, replace it with a $0.29 per gallon diesel fuel tax, and increase registration fees on most heavy vehicles	Upheld

Path to the ballot

See also: Laws governing the initiative process in Oregon

The state process

A veto referendum is a citizen-initiated ballot measure that asks voters whether to uphold or repeal an enacted law. This type of ballot measure is also called statute referendum, popular referendum, people's veto, or citizen's veto. There are 23 states that allow citizens to initiate veto referendums.

In Oregon, the number of signatures required for a veto referendum is equal to 4% of the votes cast in the last gubernatorial election. A simple majority vote is required for voter approval. The requirements to get a veto referendum certified for the 2026 ballot:

• Signatures: 78,116 valid signatures were required.
• Deadline: The deadline to submit signatures was December 30, 2025.

Stages of Referendum 120

The following is the timeline of the veto referendum:

• November 10, 2025: The referendum was filed by state Sen. Bruce Starr (R-12), state Rep. Ed Diehl (R-17), and Jason Williams, director of the Taxpayer Association of Oregon.
• November 12, 2025: The referendum was cleared for signature gathering.
• December 12, 2025: Supporters of the veto referendum reported submitting nearly 200,000 signatures to the secretary of state. The deadline to verify the signatures was January 29, 2026.
• December 29, 2025: The campaign submitted an additional 56,962 signatures for verification for a total of 250,949 signatures.
• December 30, 2025: The secretary of state reported that 163,451 signatures were valid, certifying the referendum for the ballot.
• March 2, 2026: Gov. Tina Kotek signed Senate Bill 1599 (SB 1599), moving the vote on the referendum from the November ballot to the May primary ballot. It passed in the Senate by a vote of 17-13, largely along party lines, on February 23. It passed the House on March 2 by a vote of 31-20, also along party lines.
• March 3, 2026: The sponsors of the referendum filed a lawsuit arguing the rescheduling of the election from November to May violated the state constitution.
• March 5, 2026: A second lawsuit was filed against Senate Bill 1599, moving the election from November to May. The lawsuit argued that the condensed timeline for gathering signatures to submit arguments for the voter's pamphlet is unconstitutional. It was filed in the U.S. District Court.
• March 11, 2026:
  • In Right to Vote on the Gas Tax PAC et al. vs. Tobias Read, Marion County Circuit Court Senior Judge David Leith ruled in favor of the state and upheld SB 1599, keeping the referendum on the May ballot.
  • In Martin v. Read, U.S. Circuit Court Judge Michael H. Simon ruled in favor of Mary Martin ordering the secretary of state to place her arguments in the voter information pamphlet without submitting signatures or paying the fee.
• March 17, 2026: The campaign filed a second lawsuit in federal court arguing the secretary of state's enforcement of the deadline for arguments submission for the voter information pamphlet violated the First and Fourteenth Amendments.

Right to Vote on the Gas Tax PAC et al. vs. Tobias Read

Right to Vote on the Gas Tax PAC et al. vs. Tobias Read

Ruled in favor of defendants keeping the referendum on the May ballot on March 3, 2026

Court Information
Issue	Is the passage of Senate Bill 1599 unconstitutional because it subverts the rights of the petitioners of the veto referendum and shortens the timeline for citizens to submit statements to the voters' pamphlet?
Court	Oregon 3rd Judicial District
Ruling
Ruling	Ruled in favor of defendants keeping the referendum on the May ballot
Order(s)	Order: Oregon 3rd Judicial District (March 11, 2026)
Participants
Plaintiff(s)	Right to Vote on the Gas Tax PAC, Edwin Diehl, Bruce Starr, Jason Williams, Kit Johnston
Defendant(s)	Oregon Secretary of State Tobias Read

Federal lawsuit

Right to Vote on the Gas Tax PAC et al. vs. Tobias Read

Lawsuit filed on March 17, 2026

Court Information
Issue	Does the secretary of state's enforcement of the deadline for arguments for the voter information pamphlet violate the First and Fourteenth Amendments and the Americans with Disabilities Act?
Court	United States District Court for the District of Oregon
Participants
Plaintiff(s)	Right to Vote on the Gas Tax PAC, Edwin Diehl, Bruce Starr, Jason Williams, Kit Johnston
Defendant(s)	Oregon Secretary of State Tobias Read

Mary Martin vs. Tobias Read

Mary Martin vs. Tobias Read

Temporary restraining order granted on March 5, 2026

Court Information
Issue	Does the shortened timeline to gather signatures to place arguments on the state's voter pamphlet violate the First and Fourteenth Amendments?
Court	United States District Court for the District of Oregon
Ruling
Ruling	Ruled in favor of petitioner; ordering the secretary of state to place her arguments in the voter information pamphlet without requiring a fee or signatures.
Order(s)	Order: United States District Court for the District of Oregon (March 11, 2026)
Participants
Plaintiff(s)	Mary Martin
Defendant(s)	Oregon Secretary of State Tobias Read

How to cast a vote

See also: Voting in Oregon

See below to learn more about current voter registration rules, identification requirements, and poll times in Oregon.

How to vote in Oregon

Poll times

Oregon is an all-mail voting state. Each county provides privacy booths that voters can use to mark their ballot. County clerks' offices are open from 7:00 a.m. to 8:00 p.m. local time on Election Day. Oregon is divided between the Mountain and Pacific time zones.

Registration

Check your voter registration status here.

To register to vote in Oregon, one must be a resident of Oregon, a United States citizen, and at least 16 years old. Voters must be at least 18 years old by the day of the election to receive a ballot. Potential voters can register online or by mailing in a voter registration form to your county election office. The deadline to register is 11:59 p.m., 21 days before the election.

Automatic registration

See also: Automatic voter registration

Oregon implemented automatic voter registration in 2016. Eligible residents who apply for, renew, or replace an Oregon driver's license, ID card, or permit at a DMV location are registered to vote. Voters are mailed a card afterwards to choose a political party to affiliate with or opt out of registering to vote. For more information, click here.

Online registration

See also: Online voter registration

Oregon has implemented an online voter registration system. Residents can register to vote by visiting this website.

Same-day registration

See also: Same-day voter registration

Oregon does not allow same-day voter registration.

Residency requirements

To register to vote in Oregon, you must be a resident of the state. State law does not specify a length of time for which you must have been a resident to be eligible.

Verification of citizenship

See also: Laws permitting noncitizens to vote in the United States

Oregon does not require proof of citizenship for voter registration. An individual must attest that they are a U.S. citizen when registering to vote. According to the state's voter registration application, a voter who knowingly falsely registers "can be fined up to $125,000 and/or imprisoned for up to 5 years."

All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Eight states — Alabama, Arizona, Kansas, Louisiana, New Hampshire, South Dakota, Utah, and Wyoming — have laws requiring individuals provide proof of citizenship at the time of voter registration, whether in effect or not. Three states, Florida, Georgia and Mississippi, require a person provide proof of citizenship if their citizenship status cannot be verified by other means. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.

Verifying your registration

The Oregon Secretary of State’s Office allows residents to check their voter registration status online by visiting the My Vote website.

Voter ID requirements

The federal Help America Vote Act requires that individuals in all 50 states who register to vote by mail and who have not voted previously in a federal election in their state must provide either their driver's license or a paycheck, bank statement, current utility bill, or government document showing their name and address. Individuals voting by mail must include a copy of one of those documents with their absentee/mail-in ballot.

These requirements do not apply if an individual submitted a copy of their identification, their driver's license number or the last four digits of their Social Security number when registering to vote. Oregon is an all-mail voting state. When registering to vote, voters must provide their driver's license number or the last four digits of their Social Security number.

If voters are unable to provide this information, they can provide a copy of another form of acceptable identification that shows their name and current address. The following list of accepted IDs was current as of March 2026. Click here for the Oregon Secretary of State's voter registration card to ensure you have the most current information.

“

If you do not have valid Oregon ID or Social Security number, provide a copy of one of the following that shows your name and current address. valid photo identification a paycheck stub a utility bill a bank statement a government document proof of eligibility under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) or the Voting Accessibility for the Elderly and Handicapped Act (VAEH).

”

See also

2026 ballot measures

View other measures certified for the 2026 ballot across the U.S. and in Oregon.

• 2026 ballot measures
• Oregon 2026 ballot measures
• Oregon elections, 2026

Oregon ballot measures

Explore Oregon's ballot measure history, including citizen-initiated ballot measures.

• List of Oregon ballot measures
• Transportation taxes and fees ballot measures
• Fuel taxes ballot measures
• Oregon State Legislature

Initiative process

Understand how measures are placed on the ballot and the rules that apply.

• Laws governing the initiative process in Oregon
• Veto referendum
• Oregon Constitution

External links

• Full text

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