Ballot Measure 120 amends Oregon statutes to increase the fuel tax, vehicle registration fees and title fees and temporarily increase the payroll tax used for public transportation.
Under current law and the Oregon Constitution, state fuel taxes and registration fees are imposed to pay for highways, bridges and roadside rest areas in Oregon. Payroll taxes, fares and other funds are used to pay for public transportation. Currently, a payroll tax is imposed at a rate of one-tenth of one percent. The payroll tax applies to the wages of an employee who is a resident of this state, regardless of where services are performed, or of an employee who is not a resident of this state, for services performed in this state. The revenue from the payroll tax is given to public transportation agencies across the state to provide public transportation, like bus service.
The Legislative Assembly enacted House Bill 3991 in a 2025 special session. Among other things, the bill increases vehicle fuel taxes and some vehicle registration and title fees. House Bill 3991 requires owners of electric vehicles and hybrids to pay a flat fee or a per mile fee for miles driven; imposes additional accountability measures for the Department of Transportation; eliminates existing statutory language requiring tolling for some highway projects; and simplifies the state’s "weight-mile" system of taxing heavy trucks. The bill provides that the new funding from increasing the fuel tax, registration fees and title fees will be shared among the Department of Transportation, counties and cities. In particular, cities and counties with smaller populations will get more funding than they currently receive and the state agency that is responsible for most of the roadside rest areas in the state will get additional funding to improve and maintain the rest areas along highways.
Petitioners collected sufficient signatures to invoke the right of referendum to ask voters to approve or reject certain increases in the fuel tax, vehicle registration and title fees and payroll taxes, as set forth in Ballot Measure 120. Ballot Measure 120 raises the state’s fuel tax to 46 cents and raises vehicle registration fees by $42 for passenger vehicles, utility and light trailers, low-speed vehicles, mopeds and motorcycles. Ballot Measure 120 raises title fees for passenger vehicles by $139.
The measure also temporarily increases the payroll tax for public transportation. Public transportation agencies will get more funding from the temporary increase in payroll taxes. The measure provides that the tax rate will increase to two-tenths of one percent until January 1, 2028. Starting January 1, 2028, the payroll tax rate will return to one-tenth of one percent.
If voters do not approve Ballot Measure 120, fuel taxes, registration fees and title fees will remain at their current levels. Also, the payroll tax for public transportation services will remain at its current level.
| Committee Members: | Appointed By: |
| Senator Kayse Jama, Co-Chair | President of the Senate |
| Representative David Gomberg, Co-Chair | Speaker of the House |
| Senator Khanh Pham | President of the Senate |
| Senator Bruce Starr* | President of the Senate |
| Representative Shelly Boshart Davis* | Speaker of the House |
| Representative Ben Bowman | Speaker of the House |
| Representative Willy Chotzen | Speaker of the House |
| Representative Lucetta Elmer* | Speaker of the House |
*Member dissents (does not concur with explanatory statement)
(The above committee was appointed to provide an impartial explanation of the ballot measure pursuant to SB 1599 (2026).)