Full Breakdown
Oregon Voters Reject Measure 120, Blocking Tax Hike
5/21/2026, 3:37:27 AM
Measure 120 Defeated
On May 19, 2026, Oregon voters rejected Measure 120, a referendum that would have raised the gas tax by six cents per gallon, doubled the transit payroll tax, and increased vehicle registration and title fees. Early returns showed 83 % “No” and 17 % “Yes,” a margin echoed across counties.
Legislative Context
Measure 120 originated from a special session in fall 2025 after the regular session failed to fund the Oregon Department of Transportation (ODOT). Gov. Tina Kotek and lawmakers passed House Bill 3991 to raise taxes and fees, covering a projected $242 million shortfall. ODOT warned that stagnant gas-tax revenue and rising construction costs could force layoffs and cut winter road-maintenance.
Stakeholders and Numbers
Measure 120 would raise the gas tax from $0.40 to $0.46 per gallon, double the transit payroll tax to 0.2 %, and increase vehicle registration from $43 to $85 and title fees from $77 to $216. The state projected up to $4 billion in revenue over ten years, still insufficient for ODOT’s long-term deficit. Key actors include Gov. Kotek, ODOT, Sen. Bruce Starr, Rep. Ed Diehl, and the NFIB.
Government Position
Gov. Kotek said, “I’m focused on what the challenge is right now in the state. We have an ODOT without enough funding.” ODOT called the tax hike a temporary bridge to avoid layoffs and keep snow-plow services. Legislative leaders called the package a necessary stopgap while a permanent solution is sought.
Opposition and Public Sentiment
Republican leaders called the proposal an undue burden. Rep. Paul Evans warned, “It’s going to lose, so we might as well get on to the work of finding alternatives.” Voters voiced strain: law student Thomas Lundley called the measure “such a difficult thing to finance in the coming months,” and Sister Barbara Julian of Bend said, “They’re too high right now… I don’t think they need any more gas taxes.”
Conflicting Reports
Multnomah County’s early count showed a 75 % “No” vote, slightly below the statewide 83 % figure. Final certification was pending, leaving a narrow margin for adjustment.
Verbatim Quotes
- “It’s going to be such a difficult thing to finance in the coming months,” — Thomas Lundley, law student
- “I don’t think they need any more gas taxes.” — Sister Barbara Julian, Bend resident
- “I think voters are going to overwhelmingly reject these tax and fee increases,” — Anthony Smith, NFIB Oregon director
- “It’s going to lose, so we might as well get on to the work of finding alternatives,” — Rep. Paul Evans
What’s Next
With Measure 120 defeated, the legislature must devise a new funding plan before the 2027 session. Gov. Kotek is seeking bipartisan revenue sources, while ODOT will rely on reallocated grant money and modest staffing cuts to bridge the immediate budget gap.
