Democrats Push $1 Billion/Year Tax Hike

Oregon State Legislature sent this bulletin at 06/11/2025 09:23 AM PDT

June 11, 2025

A $1 Billion Tax Hike Oregonians Can’t Afford

Democrats are rushing to pass House Bill 2025, a massive 102-page transportation package with 35+ new or increased taxes and fees that would cost our fellow Oregonians over $1 BILLION every single year.

Instead of putting all our efforts into fixing our crumbling roads or holding ODOT accountable for mismanaging billions of your hard-earned tax dollars on incomplete or delayed projects, Democrats want you to foot the bill for bloated government spending and services few Oregonians use—like empty buses in Portland and bike lanes to nowhere.

This bill hits working families, rural communities, and small businesses the hardest.

What’s in HB 2025?

Gas tax hike from 40¢ to 55¢/gallon—a 37.5% increase, tied to inflation so it will keep rising.
Registration fee hikes of up to 270%.
New car tax: 2% tax on every new vehicle sold.
Used car tax: 1% tax on used vehicles over $10,000.
Payroll tax increase: From 0.1% to 0.3%—a 114% hike, costing the average worker $205/year.
and much more.

Speak up. Show up. Push back.

We need your help to stop this $1B bill. Submit testimony or speak out in person or remotely:

Wednesday, June 11th at 4PM
- Testify in person at the Capitol in Hearing Room F OR remotely via Microsoft Teams HERE.
- Submit written testimony HERE.

Thursday, June 12th at 4PM
- Testify in person at the Capitol in Hearing Room F OR remotely via Microsoft Teams HERE.
- Submit written testimony HERE.

Sample Testimony You Can Use:

My name is [Your Name], and I live in [Your City], Oregon. I’m writing to express my strong opposition to House Bill 2025. With the cost of living already straining Oregon families, this bill would make it even more difficult to get by. Raising gas taxes, registration fees, and payroll taxes will place an unfair burden on working families like mine. I urge you to vote no on HB 2025 and instead focus on holding ODOT accountable and making better use of the funding it already has.

Republicans Have a Better Plan: Maintaining Roads and Bridges With NO New Taxes

Republicans have introduced a responsible alternative: House Bill 3982—a transportation package that refocuses ODOT, protects core services, and doesn’t raise a single tax or fee.

The Republican Plan in HB 3982:

Keeps roads plowed and potholes filled—especially in rural Oregon.
Stabilizes ODOT by eliminating waste and prioritizing essential operations.
Redirects $134 million in climate program spending to road maintenance.
Redirects $38 million from passenger rail to preserve core infrastructure.
Prevents a projected $0.60 gas tax increase tied to the Clean Fuels Program.
Implements managerial reforms, including a new Major Projects Office to improve accountability and delivery.
Provides truckers with a tax credit for years of payroll tax overpayments.
Modernizes fuel tax enforcement to reduce fraud and simplify compliance.

No new taxes. No hidden fees. Just real priorities and real solutions.

“Senate and House Republicans are leading on transportation solutions that center around Oregonians’ transportation needs and their family budgets. HB 3982 proves that better outcomes come from better priorities, not bigger budgets,” said Senate Republican Leader Daniel Bonham. ““Democrats have given Oregonians two bad options: raise taxes or raise them even more. Republicans are offering another path: cut the waste, refocus ODOT on its core mission, and stop asking taxpayers to subsidize government’s failure.”