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Oregon gas tax rises 2 cents on New Year’s


Second of four increases, totaling 10 cents, through 2024

SALEM, Ore. (KTVZ) -- Oregonians will be paying a bit more at the pump, starting on New Year's, the second of four phased-in gas tax increases that were part of the transportation measure lawmakers approved in 2017.

The 2-cent increase is the second of four planned increases in the gas tax that are part of House Bill 2017, the “Keep Oregon Moving” legislation passed by the Oregon Legislature in 2017.

Gas Tax Increase Schedule

  • $.04 - Jan. 1, 2018
  • $.02 – Jan. 1, 2020
  • $.02 – Jan. 1, 2022
  • $.02 – Jan. 1, 2024

$.10 Total

Accountability Measures

For the first time, Oregon lawmakers set requirements that ODOT and Oregon cities and counties must meet in order to trigger the increase. The Oregon Transportation Commission sent the Legislature a report outlining how ODOT and local governments have met those requirements on Nov. 26. Two more 2 cent gas tax increases, in 2022 and 2024, are also on deck—but only if ODOT meets additional accountability requirements.

Requirements met

I-205 Projects

The gas tax increase was tied to ODOT completing two specific projects to help address congestion on I-205.

  • I-205 Corridor Bottleneck ($15.5M). ODOT paved portions of I-205 and constructed new lanes between interchanges in the Sunnybrook and Johnson Creek areas to improve safety and reduce congestion.
  • I-205 Active Traffic Management ($15.2M). ODOT installed signage giving motorists real-time information about travel times.

Road & Bridge Condition Reports

ODOT worked with Oregon cities and counties to produce a website detailing the condition of the major roads and all Oregon bridges. The site grades the major roads in and through communities as good, fair, or poor so people can see what they’re getting for their increased taxes.

Project Reporting

ODOT also had to provide a list of shovel-ready projects that could be constructed with additional funds and report on the agency’s efforts to address congestion through a number of other important projects in the Portland metro region, including the (I-5 Rose Quarter project, new lanes on OR 217, widening of I-205 between Stafford Road and the Abernethy Bridge, and implementation of tolling.

How the money will be spent

Of the nearly $60 million this increase will raise, 20% goes to Oregon counties, 30% to Oregon cities and 50% to ODOT. ODOT will use its share ($27.9M) of the funds for:

  • Highway maintenance ($1.7M)
  • Bridge projects ($11.2M)
  • Seismic projects ($8.4M)
  • Preservation and culvert projects ($6.7M)

“Accountability ensures that our state and local transportation agencies are spending taxpayer dollars wisely,” said Gov. Kate Brown. “In this report, Oregonians can see exactly how we are building a transportation system that supports economic development, reduces congestion and related vehicle emissions, and creates more sustainable, livable communities,” Brown said.

“The commission is proud of the excellent work ODOT has done to date to implement the 2017 transportation legislation,” noted Oregon Transportation Commission Chairman, Robert Van Brocklin. “The additional funding that we will see beginning next January as a result of ODOT’s work will allow us to make important new investments, including projects to reduce Portland-area traffic congestion.  It will also allow us to build new and preserve existing transportation investments in every region of the state.  We look forward to continuing the work we have been charged with undertaking to keep Oregon moving.”

This first increase would raise the Oregon gas tax from 34 to 36 cents a gallon. The federal tax is 18.4 cents a gallon.  Oregon’s counties and cities are allowed to add their own local gas tax as well. At full implementation in 2024, Oregon’s gas tax will be 40 cents a gallon, still less than the gas tax in either Washington or California, ODOT said.

KTVZ News Team



  1. Accountability Measures, what are they? they can only build one worthless bridge, and dismantle it per year? Every two, three, four years. Pfffff, Defiantly something to be proud of.

      1. High enough to fix our bridges and maintain our roads, provide convenient and safe travel, and reduce congestion by providing opportunities for alternative modes.

  2. Uh oh ! .50 a tankful to maintain and improve our roads ! regressives will be outraged ! Because: 1. They can’t afford to spend .50 of their government subsidy.
    2. They believe roads fix themselves for free.
    3. They want everything to be givin to them by the government they hate.

    1. Unclefestered: I am interested in your definition of “government subsidy” and to which part of the populace you are applying the “regressive” stamp to.

        1. Gramb, if that is the case, I wonder what his comments for all the Democrats on Government assistance are who do not complain about “Big Government”, Family?

    2. I transferred my disabled Vet plates from my truck to my Prius to avoid the new registration fee increases for hight mileage cars. I can afford the increase but it was to snub Queen Brown

  3. Not that I mind the tax, I see where it is going, Potland projects. It would be nice to see this region get some competent engineers to inspect our bridges, let alone to build a bridge.

    1. No, many agree with you from what I read. The removal of like\dislike tabulation seems to de-energize the discourse of a given topic thus more palatable for pc\snowflake\intolerantleftist crusaders. Maybe Barney will not have to deal with so many offended pantywaisters as a positive though😯

  4. 2 cents,great,,on top of the 13$ extra for registration renewal if your car gets 20 or more MPG’s? and even more if 40+ MPG’s?–it’s called a sin tax in this case for trying to save $$ with good MPG’s.

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