Oregon Democrats found a way to improve roads. Now their gas tax goes
before voters as prices soar
[May 11, 2026]
By CLAIRE RUSH
PORTLAND, Ore. (AP) — Appealing to voters’ anxieties about the soaring
cost of living is central to Democrats’ messaging in their hopes of big
wins in this year’s midterm elections. In Oregon, a question on the
primary ballot is complicating that strategy.
The Democratic-controlled Legislature raised the state gas tax and a
range of fees last fall as a way to pay for road improvements and plug a
hole in the state’s transportation budget. Republicans responded with a
petition to repeal the increases, leading to a referendum that will land
before voters just as the Iran war is causing the price of gas to
skyrocket around the United States.
“It is a hell of a time to be raising gas taxes on people,” said Jeanine
Holly, filling up her tank on a recent morning in Portland.
The gas tax repeal on the state’s May 19 primary ballot comes amid
widespread disruptions in the oil industry from the war with Iran
started by Israel and President Donald Trump. Discontent is high among
U.S. consumers across the political spectrum, with the price of gas
topping $4.50 a gallon nationally on Friday and averaging about 80 cents
more per gallon in Oregon.
The referendum will give voters a chance to weigh in on a hot-button
issue hitting them directly in the pocketbook at a time when prices
remain elevated for everything from housing to groceries. Nationally,
Democrats have focused on the affordability concerns similar to those
that helped propel Trump to victory in 2024. Some of their candidates
have even proposed ways to cut taxes as a way to promote their agenda
and counter a traditional GOP strategy.
“It’s difficult to imagine a worse situation for ... a gas tax increase
than right now in American politics,” said Chris Koski, professor of
political science and environmental studies at Portland’s Reed College.
Republicans sense an opportunity
Republicans wasted no time in appealing to voters after the Legislature
and Democratic governor signed off on the tax increase, which also
included a higher payroll tax for transit projects and a boost in
vehicle registration and title fees.
They needed 78,000 voter signatures to qualify the referendum for the
ballot. They quickly got 250,000.
“That is a remarkable number,” said Republican strategist Rebecca Tweed.
Republicans in Oregon have countered Democrats’ affordability messaging
by portraying the tax and fee increases as further fueling the high cost
of living.
“Do Oregonians want to pay more? The answer is no,” said GOP state Sen.
Bruce Starr, who helped lead the referendum campaign. “Everything
they’re looking at is expensive.”
Under the legislation, Oregon’s gas tax would rise from 40 cents to 46
cents a gallon. That would make it tied with Maryland for the eighth
highest gas tax of any state when factoring in other state taxes and
fees, according to figures from the U.S. Energy Information
Administration.
At the Portland gas station, Michael Burch said he used to spend $70 to
fill three-quarters of his pickup truck's tank, but now pays $80 for
just over half a tank.
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In this image taken with a slow shutter speed, vehicles move past a
gas station on Wednesday, May 6, 2026, in Portland, Ore. (AP
Photo/Jenny Kane)
“I'm sick and tired of taxes,” the 76-year-old retiree said. “Gas is
certainly dampening the spirits and the coffers of folks that aren't
as well off.”
Hannah Coe, a 30-year-old student, said she was not sure how she
would vote on the primary ballot referendum.
“I think I would be in favor of it if it was going to go to the
things that it was saying it was going to go to, such as fixing our
roads,” she said. “I also kind of feel like that’s just a grab at
trying to get more money from the people who live here.”
Democrats blame the Iran war
Oregon Democrats spent much of last year fighting to pass a
transportation funding bill to help raise money for services such as
road paving and snow plowing. The debate came amid projections of
declining gas tax revenue as more people adopt electric, hybrid and
fuel-efficient cars.
They finally passed a narrower version of their plan during a
special session called by Democratic Gov. Tina Kotek.
She recently acknowledged the challenging timing of the referendum.
“Certainly, the conversation at the ballot this year ... is a tough
sell right now, because I think everyone is feeling a pinch on their
household budgets,” she told reporters.
But she and other Democrats said the root cause of the spike in gas
prices is Trump’s decision to go to war with Iran. She suggested the
federal government consider reducing the federal 18 cent-a-gallon
gas tax if it wants to provide relief at the pump for Americans.
Some Oregonians are receptive to the Democrats’ reason for passing
the legislation last year. Kurt Borneman, 68, said he would support
the gas tax increase, even though he's now paying at least $10 more
to fill up his tank.
“I realize that money’s tight and roads need to be improved,” he
said at the Portland gas station. “I want less government, but I
also want nice roads.”
Democratic state Rep. Paul Evans said his party lost the battle over
how to frame the gas tax increase to the public. So far, there has
been no organized effort from Democrats and their allies to oppose
the ballot referendum.
“When anything is reduced to, ‘Do you want a tax or not?’ Most
people are going to say no,” he said. “The messaging got away from
us, and it became focused upon the price instead of the value.”
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