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Oregon’s electorate delivered a clear verdict on Measure 120, the statewide referendum that sought to repeal a 6‑cent‑per‑gallon gas‑tax increase and a suite of related fees that Democratic lawmakers passed in 2025. The measure appeared on the May 19 ballot after Republican state Sen. Bruce Starr organized a petition drive that gathered more than three times the signatures required to place the referendum before voters.
The tax increase was promoted by Democratic leaders as a response to a looming shortfall in the state’s transportation budget. With an increasing share of vehicles shifting toward electric and hybrid powertrains, the state projected a decline in traditional fuel‑tax revenue. The additional 6‑cent levy and associated fees were intended to fund road repairs and highway upgrades, the largest source of transportation financing in Oregon.
Republicans framed the tax as a further strain on already‑high living costs. “Oregon taxpayers will not be ignored,” Starr told the Associated Press after the vote, echoing the campaign’s message that the tax would exacerbate the cost of living at a time when gasoline prices were surging due to the war in Iran. The conflict, which analysts linked to a sharp rise in global oil prices, has driven gasoline to record levels at the pump across the United States.
In the same election, Democratic Governor Tina Kotek and U.S. Senator Jeff Merkley easily secured their party’s nominations for the upcoming general election. Republican state Sen. Christine Drazan emerged as the GOP’s gubernatorial candidate, setting up a rematch against Kotek in November. Nonetheless, the tax referendum dominated headlines, with many voters indicating that fuel costs were the primary factor in their decision.
Voter anecdotes captured the mood at polling locations. “I feel like the roads need to be repaired as a bicyclist, so I voted yes,” said 56‑year‑old Gail Watnick, who arrived at a Portland library ballot drop‑off by bike. Conversely, 25‑year‑old David Trujillo, a primary supporter of Kotek, voted against the measure, explaining, “With the gas prices being up and with the war that is occurring, it’s very difficult for folks to get around.” Both comments illustrate the tension between infrastructure needs and immediate cost concerns.
Democrats acknowledged that the timing of the referendum was unfavorable. The party noted that the war‑driven price spike was outside its control and that the tax increase conflicted with its national messaging on affordability ahead of the 2026 midterm elections. Republicans leveraged the situation to counter Democratic narratives, portraying the tax and fee hikes as an additional burden on families already coping with higher living expenses.
The outcome leaves Oregon facing a shortfall in its transportation budget. State officials will need to explore alternative financing mechanisms to maintain road maintenance and improvement projects, especially as the shift toward electric vehicles reduces traditional fuel‑tax collections. The debate over how to fund infrastructure in a changing energy landscape is likely to continue shaping Oregon’s policy discussions in the coming months.