LOC News
Governor Kotek’s Short-Term Transportation Proposal Released
On Thursday, the LOC received a copy of the short-term transportation funding proposal that is the focus of the August 29 special legislative session that was recently announced by Governor Kotek. The details contained in this current draft are very similar to those from previous discussions involving the governor, her staff, and the co-chairs of the Joint Committee on Transportation. This includes the following:
Key Funding Elements
| Revenue Source | Proposed Increase | Raised Total Base | Surcharge Increase |
|---|---|---|---|
| Gas Tax | $0.06 | $0.46 | NA |
|
Base Registration - 0-39 Miles Per Gallon (MPG) Vehicles |
$42 |
$85 |
0 |
|
Registration - 40+ MPG Vehicles |
$42 |
$85 |
$30 |
|
Registration - Electric Vehicles |
$42 |
$85 |
$30 |
|
Registration - Utility trailers or light trailers, low-speed vehicles |
$42 |
$105 |
NA |
|
Registration - Mopeds and Motorcycles |
$42 |
$86 |
NA |
|
Title |
$139 |
$216 |
0 |
|
Payroll Tax |
0.1% |
0.2% |
NA |
|
Annual Cost of .06 Cent Gas Tax |
Payroll Impacts by Annual Earnings |
Payroll Increase | ||
| Average miles driven = 12,218 |
$40,000 |
$40 |
||
| Vehicle 20 mpg | $36.6 |
$50,000 |
$50 |
|
| Vehicle 30 mpg | $24.4 |
$75,000 |
$75 |
|
| Vehicle 40 mpg | $18.2 |
$100,000 |
$100 |
There are key principles in this proposal that remain essential for gaining the LOC’s support, including:
- 50-30-20 as the key revenue sharing formula for cities and counties;
- Support for continued funding for public transit that presents value to urban areas and connectivity to rural communities; and
- Increased accountability and transparency measures for the Oregon Department of Transportation (ODOT).
In addition to the increased fees and taxes, there is also a timeline for adding a road user fee (RUF) for electric and hybrid vehicles starting in 2028.
Along with the key components of this proposal, the LOC will want to see additional commitments from Governor Kotek and legislative leaders that recognize this as a temporary funding solution. Additionally, there must be a commitment to a bipartisan, transparent, and inclusive process leading to a long-term, comprehensive statewide transportation package in the 2027 session, designed to stabilize and modernize core transportation funding for the future.
Stay tuned for targeted communications and more details on messaging. We have our work cut out over the next few weeks and will need to secure a commitment from legislators to support our key priorities and deliver a more comprehensive transportation package in 2027.
Contact: Jim McCauley, Legislative Director – jmccauley@orcities.org
Last Updated 8/8/25