Update: Kicker raid. Gas tax

By Taxpayers Association of Oregon
OregonWatchdog.com

Two key updates on two very important bills — HB 2025 (gas tax) and Senate Bill 1177 (Kicker raid).

#1. Details behind Kicker Raid Bill SB 1177.   Last week Oregon Governor Tina Kotek warmed to the idea of stealing part of the People’s 2026 Kicker Tax Refund (average $400 to $600 per person estimate) to instead divert this money to a wildfire fund.  Senator Jeff Golden’s Bill, Senate Bill 1177, addresses this Kicker raid concept as The Oregonian notes, “Sen. Jeff Golden told colleagues on Tuesday morning that he’s still fighting for his proposal to divert part of the state’s anticipated $1.6 billion personal income tax “kicker” rebate…into a savings account to pay for wildfire on an ongoing basis.”   It would steal 100% of the Kicker for those Oregonians who make more than $90,000.  For those who make less than $90,000 SB 1177 would give people 10% to 100% of their kicker, as seen below:

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#2. The $2 billion dollar gas tax/car tax transportation package House Bill 2025.  The just released numbers on how much this bill would raise has been revealed to be $2 billion in higher taxes every year — once the bill is fully implemented.   Capitol rumors say that HB 2025 may be amended this Thursday or later.

Under scenario #1, HB 2025 may witness a significant reduction in cost and spending order to pass it.  It then would be revisited during the February Legislative Special Session 2026 to add back as much as they can.

Under scenario #2, bill is rumored to be put as a referral from lawmakers to the ballot.   This solves the problem of the House lacking votes to pass it (passing taxes requires 60% vote, but referring to voters only requires a 51% vote).  One Democratic House member is currently under medical leave.  Since lawmakers can pass legislation giving them power to control the ballot title and bill explanation of a measure they themselves send to voters, this gives then power to manipulate the process and an advantage at getting measures passed.

Finally, under scenario #3,  lawmakers may likely try to trim the bill by a few taxes (out of 11 taxes in the bill) and them ram it through the final days of the Session (ends June 29th).  If this happens, there will be a petition launched to to force the tax to require a public people’s vote. This is called a referendum petition effort.  Already No Gas Hikes PAC has raised nearly a quarter million in funds to launch such a referendum petition drive.  The Taxpayers Association of Oregon is supporting the effort.

Below is HB 2025 details as reported by the media: *** Proposed details subject to change ***

• Gas tax increase +37%. 40 cents to 55 cents.
• Gas tax indexed to inflation forever
• Wage tax 300% increase! The transit payroll tax raises from .1% to .3%
• DMV fee #1 + 162%. car registration $43 to $113
• DMV fee #2 + 146%. drivers test $45 to $111
• DMV fee #3 + 175%. License plate $12 to $33
• Transfer tax on new cars. 2%.
• Creates new tax on used cars at 1%
• Vehicle privilege tax +200%: Current .5% tax on new cars now increases  to 1%.
• Road use charge for Electric Vehicles
• Road Use charge for delivery vehicles 10 or more

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