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SALEM, Ore. — Governor Tina Kotek is moving ahead with a plan to raise Oregon’s gas tax and payroll tax to help fund the Oregon Department of Transportation (ODOT) and prevent layoffs of hundreds of employees. A special legislative session begins August 29, coinciding with Labor Day weekend, when lawmakers will vote on the package.
The proposal includes a 6-cent increase in the state gas tax, bringing it to 46 cents per gallon, an increase in the payroll tax for transit, higher vehicle title and registration fees, and a road usage charge for electric vehicles starting in 2027, with hybrid and new EVs included in 2028.
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