Oregon Voters Crush Gas Tax Measure 120 by 4-to-1 Margin

Oregon voters overwhelmingly rejected Measure 120 on May 19, defeating a transportation funding package by more than a 4-to-1 margin with over 82% of the vote counted. The measure would have increased the state gas tax from 40 to 46 cents per gallon, doubled the transit payroll tax from 0.1% to 0.2%, and raised vehicle registration and title fees. The rejection effectively repeals the transportation funding bill passed by the Democratic-controlled Legislature during a special session last fall.

Tina Kotek, who proposed and signed the original legislation, convened a 12-member workgroup to find alternative funding solutions for the Oregon Department of Transportation, with recommendations due by year's end. ODOT had already frozen over 100 job openings, and state officials warned the failure could lead to layoffs, delayed highway maintenance, and transit service cuts.

The referendum reached the ballot after Republicans, led by state Senator Bruce Starr, gathered over 250,000 signatures. The campaign unfolded amid soaring gas prices—averaging 80 cents more per gallon in Oregon than the national average—driven by disruptions from the war with Iran. Democrats, including Kotek, attributed the price spikes to President Donald Trump's decision to enter the conflict, while Republicans leveraged affordability concerns to campaign for repeal.

Democratic state Representative Paul Evans acknowledged before the vote that his party lost the messaging battle, saying the conversation became focused on price rather than value. The measure's defeat came alongside primary elections where Kotek won the Democratic gubernatorial nomination and Republican Christine Drazan won the GOP primary, setting up a November matchup.