PORTLAND, Ore. — Oregon voters on Tuesday rejected a gas tax increase passed last year by Democratic lawmakers, a victory for Republicans who put the issue to voters just as the war with Iran was causing prices at the pump to soar.
Democrats had raised the state gas tax by 6 cents a gallon and increased a series of fees to help pay for road improvements and plug a hole in the state’s transportation budget. Republicans responded by launching a successful referendum campaign to refer the tax and fee increases to voters.
While Democratic Gov. Tina Kotek and U.S. Sen. Jeff Merkley easily won their primaries Tuesday, much of the Election Day drama centered less on candidate races and more on the referendum to repeal the bill passed last fall by the Democratic-controlled Legislature to raise the state gas tax and hike a series of fees.
The failure of the gas tax was no surprise to Democrats, who acknowledged the timing of the vote was against them. The tax increase also ran counter to national Democrats’ strategy of focusing on affordability concerns in the hopes of winning back control of Congress in this year’s midterm elections.
Republicans sought to counter Democrats’ affordability messaging by portraying the tax and fee increases as further fueling the high cost of living. Democrats, meanwhile, said the root cause of the spike in gas prices was President Donald Trump’s decision to go to war with Iran.
The legislation was Democrats’ answer to help Oregon’s transportation budget as the state projects a decline in gas tax revenue from the shift to more fuel-efficient, electric and hybrid vehicles. The gas tax is the largest funding source for fixing roads and upgrading highways.
The referendum, known as Measure 120, landed on the ballot as the cost of gas is spiking nationwide from the war in Iran.
Republicans began circulating a petition to repeal the tax and fee increases soon after Kotek signed the legislation. It didn’t take them long to gather more than three times the number of signatures required to place the measure on the ballot.
With the referendum going before voters at a time when gas prices are skyrocketing, Republicans are trying to turn the tables on national Democrats’ messaging about affordability and lowering the cost of living during this year’s midterm elections.
Trump, for his part, recently said he will move to suspend the federal gas tax of 18 cents a gallon, which would need to be approved by Congress.
Late Tuesday afternoon, a steady stream of voters arrived at a Portland library serving as a ballot drop site. Even in the progressive hub, Democratic voters were divided on the measure.
“I feel like the roads need to be repaired as a bicyclist, so I voted yes,” said Gail Watnick, a 56-year-old who arrived by bike wearing a bright yellow helmet.
David Trujillo, 25, said he voted for Kotek in the primary but voted against the gas tax increase.
“I think at the moment, with the gas prices being up and with the war that is occurring, it’s very difficult for folks to get around,” he said. “If the gas prices were to rise, I think that would be a huge barrier for more of our community members.”
Kotek, who is seeking reelection, faced nine primary opponents who reported raising little to no money and don’t have experience in elected office.
Republicans have a crowded primary field of 14 candidates vying to run against her in November. They include state Sen. Christine Drazan, who lost to Kotek in the 2022 general election, and state Rep. Ed Diehl, who helped lead the gas tax referendum campaign.
The primary also includes Chris Dudley, a former NBA player whose career included time with the Portland Trail Blazers and who narrowly lost a previous bid for governor in 2010, and David Medina, a conservative influencer who was among those charged after the Jan. 6, 2021, attack on the U.S. Capitol and pardoned by President Donald Trump last year. Medina faced charges that included obstruction of an official proceeding, a felony, and several misdemeanors that included destruction of government property and disorderly and disruptive conduct.
So far, Drazan and Dudley have reported raising the most money. Dudley notably received a $1 million contribution from Phil Knight, the billionaire co-founder of Nike, which is based in Oregon.
Whoever emerges faces a difficult path to the governor’s office. Democrats appear energized around the country this year, and Oregon hasn’t elected a Republican governor in over 40 years.
Voters also are casting ballots in primaries for U.S. Senate and the state’s six U.S. House seats, five of which are held by Democrats.
Oregon’s 5th Congressional District, considered its most competitive, was flipped by Republicans for the first time in decades in 2022 but reclaimed by Democrats in 2024. The district stretches from southern Portland across the Cascade Range to Bend.
The incumbent, Democratic Rep. Janelle Bynum, has more than $2 million on hand and is running against a primary opponent who has not reported raising any money.
Two candidates, a county commissioner and a political consultant, are running in the district’s Republican primary.
The other U.S. House seats are considered largely safe for the current incumbents.
Seven Republicans are running in the primary to challenge Merkley in the fall.
