More than 80% of Oregon voters were opposing Measure 120, according to initial 2026 primary election results
Oregonians are on track to overwhelmingly reject hikes to the state’s gas tax, payroll tax and vehicle registration and title fees that would have gone toward funding the maintenance and operations of public roads and bridges.
Initial election results from the Oregon Secretary of State’s Office shortly after 8 p.m. showed the measure failing by a 4:1 margin.
Had it succeeded, the measure would have doubled most vehicle registration fees, raised the gas tax from 40 cents to 46 cents, raised title fees from $77 to $216 and doubled the payroll tax used for public transit from 0.1% of a paycheck to 0.2% until 2028.
For cities and counties, the rejection means they won’t be receiving more funding deeply needed to fix many sidewalks and potholes, particularly in rural areas. Half of the money raised by the gas tax, car registration fees and title fees goes to cities and counties.
“Without sustainable revenue, counties will face increasingly difficult decisions that directly impact road user safety and increase long-term costs to the public, such as making long-overdue safety improvements on Oregon’s most dangerous rural roads, ensuring county road departments can maintain staffing levels and avoid operations and maintenance cuts and preserving investments counties have made in our shared transportation system,” Association of Oregon Counties spokesperson Erin Good said in an email.
Measure 120’s unpopularity doesn’t come as a surprise. Nearly 250,000 Oregonians frustrated by potential gas tax hikes signed the petition that placed the measure on the ballot. Plus, gas tax hikes in Oregon are historically unpopular. Oregon voters have rejected gas tax hike proposals on the ballot more than five times since 1928.
The vote also comes as gas prices continue to rocket upward because of the Iran war. As of Tuesday, motor club AAA tracked average prices in Oregon at $5.34 per gallon — more than 80 cents higher than the national average and $1.38 more than May 2025.
What’s next for transportation funding?
Kotek earlier this month convened 12 transportation and business experts and tasked them with finding a solution to Oregon’s transportation funding crisis.
The workgroup is trying to solve the same problem lawmakers tried to in 2025: How to sustainably fund road maintenance and operations across the state.
The issue has plagued lawmakers since January 2025, when lawmakers had six months during the legislative session to find ways to raise revenue for the Oregon Department of Transportation or otherwise face a budget deficit. By June, Republicans and Democrats couldn’t reach a compromise, and Gov. Tina Kotek had to call for a special session in the fall for Democrats to finally have the votes needed to pass a significantly smaller transportation funding plan.
That transportation package would have raised $4.3 billion for the Oregon Department of Transportation over the next decade, including $791 million in the 2025-27 budget cycle, but most of that anticipated revenue was halted when the coalition led by Diehl, Sen. Bruce Starr, R-Dundee and Taxpayer Association of Oregon founder Jason Williams petitioned to place that law on the ballot.
Oregon legislators last voted to raise the gas tax in 2017, with a 10-cent increase phased in over six years. Since then, the cost of transportation materials and labor has gone up and more Oregonians are driving electric or fuel efficient vehicles, which means the state has gradually collected less revenue from the gas tax despite those vehicles contributing to the wear and tear of public roads.
Kotek’s workgroup will present its final recommendations by the end of the year. Those recommendations will guide lawmakers in the 2027 legislative session.
