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December 17, 2010

Oregon's Gas Tax to Increase 6 Cents Jan. 1 

Oregon's gas tax will jump 6 cents a gallon effective New Year's Day, which is expected to raise an additional $300 million for highway and bridge projects in 2011 when combined with higher automobile registration fees.

It's the state's first gas-tax increase since 1993, The Oregonian reported. The 2009 Legislature passed the 25% increase, taking Oregon's gas tax from 24 cents to 30 cents a gallon starting in 2011. (Every gallon of gasoline is also subject to a federal tax of 18.4 cents.) The Oregon Department of Transportation is ready to begin 51 projects set to receive $960 million from the Jobs and Transportation Act in coming years.

Supporters note that Oregon's gas tax will still be less than some neighboring states. Oregon was the first state to implement a gas tax -- 1 cent a gallon in 1919. The state shares the tax with counties and cities.

The Jobs and Transportation Act of 2009 is the biggest transportation spending measure in Oregon history. Under the bill, new driving-related fees came first. Last fall, for example, motorists saw higher vehicle registration fees kick in. They also saw vehicle title fees more than triple to $77, the license plate manufacturing fee double to $20, and motorcycle registration jump from $15 to $24.

State officials estimate the gas-tax increase will cost the average driver of a passenger car about $32 extra in 2011.

Earlier this year, opponents tried and failed to gather enough signatures to put a repeal of the gas tax before voters on the November ballot.


Questions regarding this article may be directed to editor@aashtojournal.org.

 
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