A Republican-led campaign seeking to roll back parts of Oregon’s new transportation funding law turned in 194,000 voter signatures to the Oregon Secretary of State’s Elections Division on Friday, a move that could force a statewide vote in 2026 and pause several tax and fee increases.
The effort, branded “No Tax Oregon” and organized under the Right to Vote on the Gas Tax political action committee, targets revenue provisions in House Bill 3991, the transportation package lawmakers approved during the Legislature’s fall special session and Gov. Tina Kotek signed into law.
Campaign organizers say their submission is more than double the roughly 78,000 valid signatures generally required to qualify a statewide referendum. Even with the cushion, elections officials are expected to reject some signatures during the review process for common reasons such as inactive registrations, voters not being registered in Oregon, or errors on petition forms. One of the chief petitioners, Ed Diehl, said the signature total could climb further as additional sheets are turned in. “We just submitted on Friday to the Secretary of State 194,000 signatures,” Diehl said in an interview, adding the effort expects to “be close to a quarter million signatures when we’re all said and done.”
State elections officials must verify the signatures. The Elections Division lists Dec. 30, 2025, as the filing deadline for signatures, and public reporting has said the verification process runs into late January 2026. If enough signatures are validated, the challenged portions of the law would remain suspended until voters decide the question at the Nov. 3, 2026, general election.
What House Bill 3991 would change
The referendum focuses on four revenue streams in HB 3991: a 6-cent increase to Oregon’s gas tax, increases to vehicle registration fees, increases to vehicle title fees, and a temporary increase to the statewide transit payroll tax.
If implemented, the gas tax would rise from 40 cents to 46 cents per gallon. The transit payroll tax would temporarily double from 0.1% to 0.2% and is scheduled to expire in January 2028. The bill’s registration and title fee increases were set to start at the end of December, with the gas tax and payroll tax changes set for early January.
Other parts of the transportation package are not covered by the referendum and would still take effect. Those provisions include changes to how heavy trucks are taxed, removal of statutory language requiring tolling in the Portland region, new legislative oversight tools, and a future shift toward charging drivers of electric vehicles and hybrids by the mile.
Supporters of the law say the package is designed to shore up transportation funding as maintenance costs climb. Opponents argue the Legislature moved too fast and that voters should decide whether higher taxes and fees are justified. Diehl said the pace of signature-gathering reflects that sentiment. “This whole referendum struck a nerve,” he said.
What it means for employers and what happens next
The signature submission is already affecting one piece of the package with direct implications for Oregon employers: the statewide transit payroll tax.
Oregon’s statewide transit tax is currently one-tenth of 1% (0.1%) and was first enacted by the Legislature in House Bill 2017 in 2017. Under HB 3991, the rate would increase to two-tenths of 1% (0.2%) beginning Jan. 1, 2026, through amendments to Oregon Revised Statutes 320.550.
But with referendum signatures now under review, the Oregon Department of Revenue has told employers it is pausing implementation of the rate increase while signatures are validated. Employers should continue withholding at the 0.1% rate during the verification period. If the measure is successfully referred to the ballot, the department has said the pause will remain in effect pending the outcome of the election. Employers with questions have been directed to contact the Department of Revenue at payroll.help.dor@dor.oregon.gov.
The Elections Division will continue reviewing petition sheets to determine whether enough signatures match registered Oregon voters. If the measure qualifies, the disputed tax and fee increases would stay on hold until the 2026 election unless lawmakers change the law before then.
Referendum supporters say the signature drive is intended to push a different approach at the Oregon Department of Transportation, centered more tightly on maintenance and safety. “You need to come up with a solution for ODOT that focuses them on mission, aligns priorities to prioritize safety and maintenance first, and doesn’t require any more taxes and fees,” Diehl said.
For now, the next milestone is the state’s signature verification decision, which will determine whether the tax increases remain paused and whether Oregon voters will see the transportation tax question on the 2026 ballot.
