SALEM, Ore. (KATU) — The Oregon House has voted to pass a transportation funding bill, which looks to increase and add taxes to pay for highway maintenance and save hundreds of jobs.
Monday marked day three of the Oregon Special Session, which was called by Governor Tina Kotek after lawmakers failed to pass a transportation bill in the regular session.
After extensive debate on Sunday, House Bill 3991 passed out of committee with a 7-to-5 vote, with two amendments adopted.
One of the amendments allows the Department of Administrative Services (DAS) to adjust gas taxes and per-mile taxes only by decreasing them. DAS was previously allowed to increase or decrease the taxes to meet a state constitution requirement that heavy and lighter-weight vehicles be equitably taxed for road repair.
Another amendment will sunset the bill’s proposed payroll tax increase on January 1, 2028.
On Monday, the bill received a majority vote in the House and had a first read in the Senate.
The bill could have received a final vote that same day, had all lawmakers in the Senate voted unanimously to suspend the rules and proceed with both the second and final reading on Monday. Republicans had previously stated they would not allow that.
The bill will receive a second reading Tuesday and will likely receive a final vote Wednesday.
At this point, Democrats who have a three-fifths majority in the House and Senate are well-poised to pass the bill Wednesday, provided no democrats are absent or flip.
Senator Mark Meek, the one Democrat Senator who had not supported a different version of the bill during the legislative session, has told at least one news outlet that he would support this version. On Monday, however, Senator Chris Gorsek (D-Gresham) was excused. It is unclear if he will be back on Wednesday, and his absence could potentially derail the bill.
READ MORE | Oregon committee passes bill to fund ODOT, heads to the house floor
“Legislators amended this bill to address concerns about cost of living, including eliminating the provision allowing tax increases without legislative approval,” said House Majority Leader Ben Bowman (D-Tigard, Metzger, & S. Beaverton). “This bill will prevent the closure of a dozen maintenance stations, keep thousands of road miles plowed in the winter, and allow emergency responders to safely get to people who need help.”
House Republican Leader Christine Drazan spoke out against the bill ahead of the vote, saying a majority of Oregonians were opposed to the bill in public testimony.
“This is a massive tax increase that ignores the voices of thousands of Oregonians,” said Rep. Drazan. “Taxes are not the solution to every challenge we face as a state. It is wrong and shameful that we are doubling the payroll taxes for Oregon workers on Labor Day, while also increasing the cost of gas and DMV services. It is not courage to move ahead in opposition to the needs and concerns of those we are here to represent.”
Transportation agencies say if legislators don’t end up passing the bill in the special session, there could be major impacts to highways and road projects, as well as to transportation services statewide.
The bill could land on Governor Kotek’s desk by the end of the week.
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