PORTLAND, Ore. (KATU) — A key vote on a transportation bill to prevent layoffs at the Oregon Department of Transportation and help maintain the state’s roads has been delayed again, according to the Senate president’s office late Tuesday night.
The vote was supposed to happen in the state Senate on Wednesday. It has now been pushed to at least Sept. 29.
Sen. Chris Gorsek, D-Gresham, has been recovering from health issues and has been absent from a special session to pass a transportation funding bill. The Democrats need his vote to pass the governor-backed bill.
State senators were initially scheduled to vote on the bill Sept. 3 but delayed it nearly two weeks so Gorsek could be well enough to cast his vote on the Senate floor.
Gorsek was still recovering from back surgery on Tuesday night.
Senate President Rob Wagner’s office said in a news release that Gorsek’s doctors had sent Wagner a letter Monday night saying it be would “medically unsafe and unwise for Sen. Gorsek to leave the hospital at this time.”
Wagner, a Democrat from Lake Oswego, visited Gorsek in the hospital on Tuesday to see how he was doing and pass along well wishes from his colleagues in the Senate.
Lawmakers failed to pass a transportation bill during this year’s regular session, and so Gov. Tina Kotek called lawmakers into special session.
The Oregon House has already passed the bill. The Senate still needs to sign off on it before it can be sent to the governor’s desk for her signature.
With a Democratic supermajority in the Senate, Democrats do not need Republican support if every Democrat votes yes.
Senate Democrats seemed to be aligned in their support for the bill. Senator Mark Meek, D-Gladstone, who publicly opposed the transportation bill during the regular session, told another media outlet he is leaning toward voting for the slimmed-down version of the package this time around.
Because of the delays, Kotek has postponed layoffs at ODOT until Oct. 15.
What the bill does
The bill increases the state’s gas tax by six cents, raising the statewide gas tax to 46 cents per gallon.
It would also increase registration and title prices at the DMV. Most vehicle registration fees will increase by $42, and most title fees will increase by $139.
Oregonians also pay registration and title surcharges based on the fuel efficiency of their car.
The registration surcharge for vehicles achieving 40 or more miles per gallon (MPG) will increase from $35 to $65. Electric vehicle (EV) registration surcharges will jump from $115 to $145. Title surcharges will not be affected by this bill.
The bill will also increase the state’s payroll tax, a tax levied on the wages and salaries of employees in Oregon. The tax dollars support public transportation services statewide.
The payroll tax will increase from 0.1% to 0.2% for a two-year period. The tax will revert to 0.1% on January 1, 2028.
A new per-mile or annual road usage charge (RUC) will be phased in over the next three years.
If the bill passes, the RUC rate would increase to 2.3 cents per mile. Electric vehicle owners could also opt to pay a $340 annual fee under this proposal.
When will these tax increases take effect?
According to the bill, the gas tax and vehicle fee increases will take effect 91 days after the special session is adjourned.
If the bill is passed and lawmakers end the session tomorrow, the gas tax and vehicle fee increases will take effect on December 17.
Regarding the payroll tax, it will be implemented at the beginning of next year. The increase will be in effect from January 1, 2026, to December 31, 2027.
The RUC charge for electric vehicles will be phased in for the next three years.
Existing electric vehicle owners will begin paying a per-mile fee on July 1, 2027. Those who drive electric cars will be enrolled in the program when they register an EV at the DMV.
New electric vehicles will begin paying the per-mile fee on January 1, 2028. All hybrid and plug-in hybrid owners will be subject to a per-mile charge starting July 1, 2028.
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