Oregon (statewide) · Ballot Measure 120

Increases fuel taxes, registration/title fees for roads, tax on wages for public transportation services

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Measure 120: Increases fuel taxes, registration/title fees for roads, tax on wages for public transportation services

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If YES wins

Increases fuel taxes, certain vehicle registration/title fees for state, local road construction, maintenance, improvements; increases tax on wages for public transportation services.

If NO wins

Retains fuel taxes at 40 cents per gallon, rejects increases to vehicle registration and title fees, tax on wages for public transportation services.

Ballot summary(verbatim from official pamphlet)

Measure increases motor vehicle fuel and use fuel taxes 6 cents per gallon, increases annual registration fees from $43 to $85 for passenger vehicles; from $63 to $105 for utility and light trailers, low-speed vehicles and medium-speed electric vehicles; from $44 to $86 for mopeds and motorcycles. Measure increases passenger vehicle title fees from $77 to $216. Revenues from tax/fee increases distributed: 50% to Department of Transportation, 30% to counties, 20% to cities. Revenues used for state and local road construction, maintenance, and improvements. Measure increases tax on wages for public transportation services to two-tenths of one percent; applies to wages of employee who is a state resident, regardless of where services performed, or non-resident for services performed in this state.

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The arguments — both sides

Pulled verbatim from the official voters' pamphlet. fwdio.org doesn't add or remove anything — both sides get equal real estate.

YES · 4 arguments in favor

Argument · YESfurnished by Elvyss Argueta, Oregon Education Association

Oregon's education unions: safe transportation gets students to school

Oregon education professionals understand that our students depend on safe, reliable transportation to get to and from school every day. School buses must operate on safe roads to ensure students arrive on time, especially in rural and underserved areas. Teachers, school staff, and support professionals rely on well-maintained roads and transit options to reach schools every day. Measure 120 provides stable, long-term funding to maintain and improve Oregon's transportation system. This includes safer streets around schools, better-maintained roads for buses, and stronger public transit that helps students, families, and educators get to school and work reliably.

3 signatories

Oregon Education Association
Oregon School Employees Association
American Federation of Teachers – Oregon

Argument · YESfurnished by Catie Theisen, Oregon Labor Federation, AFL-CIO

Oregon's labor movement: safe roads, connected communities, good jobs

Measure 120 will protect family-wage union jobs, invest in safer roads, and fund reliable transit. The last few years have seen hundreds of essential positions within ODOT go vacant without funding to fill them. Maintenance crews have been decimated, in many cases leaving just a couple of people responsible for hundreds of lane miles of roads. The threat of additional layoffs has caused hundreds of workers to leave ODOT. Without this funding, we'll see more potholes, crumbling bridges, and more frequent road closures.

5 signatories

OR Labor Federation, AFL-CIO
Oregon AFSCME
Association of Engineering Employees of Oregon
LIUNA Oregon
SEIU 503

Argument · YES

Oregon counties: 33,000 miles of roads need maintenance

Counties across Oregon are responsible for the primary maintenance of over 33,000 miles of roads, infrastructure, and in some cases, transit. Years of underinvestment have resulted in potholes, crumbling bridges, and reduced public transportation services. Between 1995 and 2017, the county road workforce fell by 24%, or 485 positions. Today, counties operate at roughly 80% of the staff needed to maintain Oregon's roads and bridges. This package preserves the state's allocation of 30% of essential State highway funding for counties.

1 signatories

Association of Oregon Counties

Argument · YESfurnished by Felisa A Hagins, SEIU Oregon

Blue Green Alliance: investing in workers, infrastructure, and climate

Oregon's transportation system can help reduce our carbon footprint while providing good, family wage jobs for a skilled workforce. This requires a sustainable funding source. Voting YES on Measure 120 will protect family-wage union jobs, strengthen our transportation workforce, and ensure Oregon has the people and resources needed to maintain safe roads, reliable transit, and essential public services for years to come. Investments in public transit, allocations to local counties, and resources for multimodal transportation alternatives are essential.

1 signatories

Oregon Blue Green Alliance

NO · 3 arguments in opposition

Argument · NOfurnished by Edwin L. Diehl, III, Republican Candidate for Governor and Co-Chief Petitioner

Petitioners: 250,000 Oregonians demanded a vote

More than 250,000 Oregonians signed petitions to refer this $4.3 billion tax package to a public vote — an unprecedented grassroots effort completed in just 38 days by an all-volunteer team. The Legislature's transportation package raises billions in new taxes over the next decade, including higher gas taxes, increased DMV fees, new vehicle charges, and a doubling of payroll taxes for transit. For many households, that means hundreds of dollars more every year. Oregon already has some of the highest fuel prices in America. Families are struggling with groceries, housing, childcare, and energy costs. Before asking you for more money, state government should prove it can responsibly manage the billions it already collects.

1 signatories

Co-Chief Petitioners of the Measure 120 'No Tax Oregon' Referendum

Argument · NOfurnished by Jason D. Williams, founder, Taxpayers Association Oregon

Taxpayers Association of Oregon: gas taxes have risen every 2 years

Oregon gas taxes have been soaring for nearly a decade: +4 cents in 2018 (+13%), +2 cents in 2020 (+5%), +2 cents in 2022 (+5%), +2 cents in 2024 (+5%), and now +6 cents in 2025 (+15%) under HB 3991 — a total of 46 cents. ODOT and politicians decided to triple their tax increase in 2025 compared to previous years. That is too much, too fast. ODOT should balance their tax increases with taxpayers' ability to pay. They should be modest and fair. Measure 120 is neither.

1 signatories

Taxpayers Association of Oregon

Argument · NOfurnished by Kit Johnston, Chair, Yamhill County Board of Commissioners

Yamhill County Commissioner Kit Johnston: no new taxes

More than 12,000 Yamhill County residents signed the petition, joining 250,000 Oregonians statewide who demanded the right to vote on these taxes. With families already feeling the pressure of higher costs for groceries, fuel, housing, and utilities, new taxes and tax hikes deepen the financial strain many households and businesses are facing in Oregon. The state's decision to move this vote from November to May forced counties to rapidly adjust staffing, security, and ballot processing — all of which increased election costs for taxpayers.

Explanatory statement

Ballot Measure 120 amends Oregon statutes to increase the fuel tax, vehicle registration fees and title fees and temporarily increase the payroll tax used for public transportation. Under current law and the Oregon Constitution, state fuel taxes and registration fees are imposed to pay for highways, bridges and roadside rest areas in Oregon. Payroll taxes, fares and other funds are used to pay for public transportation. Currently, a payroll tax is imposed at a rate of one-tenth of one percent. The payroll tax applies to the wages of an employee who is a resident of this state, regardless of where services are performed, or of an employee who is not a resident of this state, for services performed in this state. The revenue from the payroll tax is given to public transportation agencies across the state to provide public transportation, like bus service. The Legislative Assembly enacted House Bill 3991 in a 2025 special session. Among other things, the bill increases vehicle fuel taxes and some vehicle registration and title fees. House Bill 3991 requires owners of electric vehicles and hybrids to pay a flat fee or a per mile fee for miles driven; imposes additional accountability measures for the Department of Transportation; eliminates existing statutory language requiring tolling for some highway projects; and simplifies the state's 'weight-mile' system of taxing heavy trucks. The bill provides that the new funding from increasing the fuel tax, registration fees and title fees will be shared among the Department of Transportation, counties and cities. In particular, cities and counties with smaller populations will get more funding than they currently receive and the state agency that is responsible for most of the roadside rest areas in the state will get additional funding to improve and maintain the rest areas along highways. Petitioners collected sufficient signatures to invoke the right of referendum to ask voters to approve or reject certain increases in the fuel tax, vehicle registration and title fees and payroll taxes, as set forth in Ballot Measure 120. Ballot Measure 120 raises the state's fuel tax to 46 cents and raises vehicle registration fees by $42 for passenger vehicles, utility and light trailers, low-speed vehicles, mopeds and motorcycles. Ballot Measure 120 raises title fees for passenger vehicles by $139. The measure also temporarily increases the payroll tax for public transportation. Public transportation agencies will get more funding from the temporary increase in payroll taxes. The measure provides that the tax rate will increase to two-tenths of one percent until January 1, 2028. Starting January 1, 2028, the payroll tax rate will return to one-tenth of one percent. If voters do not approve Ballot Measure 120, fuel taxes, registration fees and title fees will remain at their current levels. Also, the payroll tax for public transportation services will remain at its current level.

Estimated financial impact

For Fiscal Years 2027 through 2035, fuels tax collections would increase by an annual average of $104 million, registration fee revenue would increase by an annual average of $157 million, and title fee revenue would increase by an annual average of $130 million. Increased revenues result in additional average annual allocations of $196 million to the state, $117 million to counties, and $78 million to cities. Payroll tax collections and public transportation service expenditures would increase by $118 million in Fiscal Year 2027 and by $124 million in Fiscal Year 2028.

Committee that drafted this estimate (8 members, 3 dissent)

· Senator Kayse Jama (Co-Chair, appointed by President of the Senate)
· Representative David Gomberg (Co-Chair, appointed by Speaker of the House)
· Senator Khanh Pham
· Senator Bruce Starr (dissents)
· Representative Shelly Boshart Davis (dissents)
· Representative Ben Bowman
· Representative Willy Chotzen
· Representative Lucetta Elmer (dissents)

Sources

↗Oregon Secretary of State — State Voters' Pamphlet (Book 13, Multnomah)· Book 13, p. 77 (Measure 120 ballot title, summary, financial impact)· captured 2026-05-12 ↗Oregon Secretary of State — State Voters' Pamphlet (Book 13, Multnomah)· Book 13, p. 78 (Explanatory Statement)· captured 2026-05-12 ↗Oregon Secretary of State — State Voters' Pamphlet (Book 13, Multnomah)· Book 13, pp. 79-80 (Arguments in Favor)· captured 2026-05-12