Photo credit: Smallman12q via Wikimedia CommonsThe Oregon House has passed HB 2017, a $5.3 billion transportation funding bill, spread out over 10 years, that would incrementally increase the state’s gas tax 10 cents per gallon over a seven-year period.
The legislation would also add a 0.1 percent payroll tax to fund transit programs, a 0.5 percent privilege tax on vehicle dealers to subsidize electric vehicles and to fund the connect Oregon multimodal program and a bicycle excise tax for bicycle and pedestrian multimodal programs.
Oregon’s gas tax currently is 30 cents per gallon. Under HB 2017, the rate would increase to 34 cents per gallon for 2018 and 2019, 36 cents per gallon for 2020 and 2021, 38 cents per gallon for 2022 and 2023, and peak at 40 cents per gallon in 2024.
These increases are expected to raise, in combination with motor vehicle registration and titling fees, $338.2 million for the 2017-2019 biennium period, $621.3 million for 2019-2021, $815.3 million for 2021-2023, $972.4 million for 2023-2025 and $1.02 billion for 2025-2027 for a total of $3.76 billion. The gas tax revenue alone for the 10-year period would be $1.29 billion.
The dealer privilege tax is estimated to bring in $40.3 million for 2017-2019, $56.1 million for 2019-2021, $56.4 million for 2021-2023, $55.5 million for 2023-2025 and $54.8 million for 2025-2027 for a total of $263.0 million.
The payroll tax is expected to collect $115.8 million for 2017-2019, $250.1 million for 2019-2021, $275 million for 2021-2023, $302.6 million for 2023-2025 and $334.2 million for 2025-2027 for a total of $1.27 billion.
The bike excise tax forecasts include $2.1 million for 2017-2019, $2.8 million for 2019-2021, $2.8 million for 2021-2023, $2.8 million for 2023-2025 and $2.8 million for 2025-2027 for a total of $13.3 million.
The measure, approved by the House in a 39-20 vote, now moves to the Senate. More details on the revenue breakdowns are available here.
