Big “gas-wage-car” tax bill to be revealed this week

By Taxpayers Association of Oregon
OregonWatchdog.com

Capitol insiders say this week may see more detailed plans behind the massive billion-dollar road tax plan.   The politicians have about 30 days left before the deadline to leave the Capitol, and both Democratic leaders and Republican leaders may begin showing their detailed plans this week.

As of yet, there is no bill or details for the entire Session despite it being one of the biggest (up to $2 billion) and most contentious issues of the Session.

Here is what Democratic leaders proposed a few weeks ago (with no actual bill number nor bill language).

#1. Wage tax hike (payroll) + 125% increase
This increases the payroll wage tax/surcharge on your employee paycheck. It currently is .1%and the new increase brings it up to .18% a big 125% increase. This funds various transit projects.

#2. Gas tax (+ 20-cent) + 50% increase
Increases Oregon’s current 40-cent gas tax by 20-cents. The Oregon gas tax was last raised last year by 5%. Oregon has the nation’s 10th highest gas tax.

#3. New 1% car tax — this car tax is a new tax
Creates a new “one-time system use fee” for when you purchase a vehicle, new or used.

#4. New 3% Tire Tax new — this tire tax is a brand new tax
Enacts new 3% tax on tires to raise $25 million for train expenses, salmon management expenses and wildlife crossings. Half of tire tax will go to train programs.

#5. Car sales tax + 60% increase
Increases the Oregon new car sales tax, also called the privilege tax, by 60%. Takes it from .5% to .8%.

#6. DMV fee #1 — Title fee increase +100%
Adds new $90 fee increase to current fees that range from $90 to $190.

#7. DMV fee #2 — Vehicle registration fee increase
Increases vehicle registration fees by $66

#8. Weight Mile Tax + 16.9%
This increases the weight mile tax on heavy vehicles

#9. EV road use charge new
Creates new “road usage charge” for electric vehicles.  This also may apply to hybrid (gas/EV) vehicles.

#10. Delivery vehicle charge new
New charge for any delivery companies with more than 10 vehicles.

#11 Bike tax increase — 63% increase
Increases current bike tax from $15 to $24.9 for all bikes over $200.
But wait there’s more …

#12. Indexing fuel taxes.
– This plan aims to index fuel taxes to inflation so they will increase without a vote of lawmakers.   If America gets an inflation spike, so will the tax spike.

#13. Spends tax dollars giving subsidies for youth using buses.

#14. Hand-outs to Amtrak. 
Aims to give $17 million to Amtrak train services, despite their declining popularity.

Stay tuned.