PORTLAND, Ore. — Democratic leaders across the country are focusing their campaign messages on rising living costs as they prepare for midterm elections. However, in Oregon, a ballot question is creating complications for that political strategy.
Last fall, Oregon’s Democratic-led Legislature approved higher gas taxes and various fees to finance road infrastructure projects and address gaps in the state’s transportation funding. GOP lawmakers responded by gathering petition signatures to challenge these increases, resulting in a referendum scheduled during a period when gas prices are surging nationwide due to the Iran conflict.
“It is a hell of a time to be raising gas taxes on people,” said Jeanine Holly, filling up her tank on a recent morning in Portland.
Oregon’s May 19 primary ballot will include the gas tax repeal question during widespread oil market disruptions caused by the Iran war initiated by Israel and President Donald Trump. American consumers across party lines are expressing frustration, with national gas prices exceeding $4.50 per gallon on Friday and Oregon averaging roughly 80 cents higher per gallon.
This referendum allows voters to address an issue directly affecting their wallets while costs for housing, food, and other necessities remain high. Across the nation, Democrats have emphasized affordability concerns similar to those that contributed to Trump’s 2024 victory. Several Democratic candidates have even suggested tax reduction proposals to advance their platform and challenge typical Republican tactics.
“It’s difficult to imagine a worse situation for … a gas tax increase than right now in American politics,” said Chris Koski, professor of political science and environmental studies at Portland’s Reed College.
GOP leaders quickly mobilized voters after the Legislature and Democratic governor approved the tax hike, which also encompassed increased payroll taxes for transit initiatives and higher vehicle registration and title fees.
The referendum required 78,000 voter signatures for ballot qualification. Republicans collected 250,000 signatures.
“That is a remarkable number,” said Republican strategist Rebecca Tweed.
Oregon Republicans have challenged Democrats’ affordability messaging by characterizing the tax and fee increases as worsening high living costs.
“Do Oregonians want to pay more? The answer is no,” said GOP state Sen. Bruce Starr, who helped lead the referendum campaign. “Everything they’re looking at is expensive.”
The legislation would increase Oregon’s gas tax from 40 cents to 46 cents per gallon. This would tie Oregon with Maryland for the eighth-highest state gas tax when including other state taxes and fees, based on U.S. Energy Information Administration data.
At the Portland gas station, Michael Burch said he previously spent $70 to fill three-quarters of his pickup truck’s tank, but now pays $80 for just over half a tank.
“I’m sick and tired of taxes,” the 76-year-old retiree said. “Gas is certainly dampening the spirits and the coffers of folks that aren’t as well off.”
Hannah Coe, a 30-year-old student, said she was uncertain about her vote on the primary ballot referendum.
“I think I would be in favor of it if it was going to go to the things that it was saying it was going to go to, such as fixing our roads,” she said. “I also kind of feel like that’s just a grab at trying to get more money from the people who live here.”
Oregon Democrats dedicated much of last year to advancing transportation funding legislation to generate revenue for services including road maintenance and snow removal. The discussion occurred amid forecasts of declining gas tax income as more drivers choose electric, hybrid, and fuel-efficient vehicles.
They ultimately approved a reduced version of their proposal during a special legislative session convened by Democratic Gov. Tina Kotek.
She recently recognized the difficult timing of the referendum.
“Certainly, the conversation at the ballot this year … is a tough sell right now, because I think everyone is feeling a pinch on their household budgets,” she told reporters.
However, she and fellow Democrats argued that Trump’s decision to engage in war with Iran is the primary cause of gas price spikes. She proposed that the federal government consider lowering the federal 18 cent-per-gallon gas tax to provide pump relief for Americans.
Some Oregon residents support the Democrats’ rationale for last year’s legislation. Kurt Borneman, 68, said he would back the gas tax increase, despite now paying at least $10 more to fill his tank.
“I realize that money’s tight and roads need to be improved,” he said at the Portland gas station. “I want less government, but I also want nice roads.”
Democratic state Rep. Paul Evans said his party failed to effectively communicate the gas tax increase to the public. No organized Democratic opposition to the ballot referendum has emerged.
“When anything is reduced to, ‘Do you want a tax or not?’ Most people are going to say no,” he said. “The messaging got away from us, and it became focused upon the price instead of the value.”
