Oregon Transportation Tax Referendum: Funding the State’s Future

Oregon Governor Tina Kotek signed legislation into law on March 2, 2026, moving a high-stakes referendum on transportation tax increases from the November general election to the May primary. The decision follows a period of legislative tension regarding the state’s transportation funding and the timing of voter input.

The legislation, known as Senate Bill 1599, passed the Oregon House on the afternoon of March 2, 2026, with a 31-20 margin. The bill had previously cleared the Oregon Senate on February 23, 2026, before moving to the House for a final vote and subsequent signature by Governor Kotek on Monday evening.

Legislative Divide and House Proceedings

The passage of Senate Bill 1599 was marked by significant political friction. During a lunch break in the floor session, eight House Republicans walked out, resulting in unexcused absences for those members. The representatives who were absent during the proceedings included Rep. Darin Harbick of McKenzie Bridge, Rep. Gregory Smith of Heppner, Rep. Virgle Osborne of Roseburg, Rep. Alek Skarlatos of Winston, Rep. Shelly Boshart-Davis of Albany, Rep. Anna Scharf of Amity, Rep. Darcey Edwards of Banks, and Rep. Dwayne Yunker of Grants Pass.

While the bill primarily saw support from the Democratic majority, five Democratic representatives voted alongside Republicans. Those who broke party lines included Rep. Lamar Wise of Portland, Rep. Ricki Ruiz of Gresham, Rep. Sue Rieke Smith of Wilsonville, Rep. Emerson Levy of Bend, and Rep. Lesly Munoz of Woodburn.

Democratic supporters of the measure argued that shifting the vote to May is necessary to provide state and local governments with earlier certainty when planning transportation budgets. Rep. David Gomberg, a Democrat from Otis, emphasized the urgency of the timeline for the state’s workforce and infrastructure.

We need to end this uncertainty sooner, rather than later, We need to do this for our state employees, for the productivity of our second-largest state agency, and for Oregonians who rely on safe, drivable roads every day.

Rep. David Gomberg (D-Otis)

The Origins of Ballot Measure 120

The referendum, identified as Ballot Measure 120, centers on the implementation of House Bill 3991. That legislation was passed by the Oregon Legislature during a special session and signed into law by Governor Kotek in November 2025.

House Bill 3991 was designed to increase revenue for the State Highway Fund to prevent service cuts and avoid layoffs within the state’s transportation infrastructure management. To achieve these funding goals, the bill introduced several significant changes to how transportation is financed in Oregon.

• The bill increased revenue through the implementation of higher taxes and fees.
• It established a road usage charge as a new funding mechanism.
• It revised existing taxes related to weight and diesel.
• It repealed a previous tolling program.

The move to shift the referendum to the May primary ensures that the viability of these funding mechanisms—and the subsequent stability of the State Highway Fund—will be determined months earlier than originally scheduled. This timeline is intended to mitigate the financial instability that would occur if budget decisions had to wait until after the November general election.