All Roll Calls
Yes: 79 • No: 50
OregonHB 39912025 1st Special SessionHouseWALLET
Relating to transportation; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.
Sponsored By: Sponsor information unavailable
Became Law
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Bill Overview
Analyzed Economic Effects
22 provisions identified: 7 benefits, 8 costs, 7 mixed.
How new road money is split
Each year, $30,000,000 goes to three interstate projects until they are done or bonds are repaid. Another $15,000,000 goes each year to Safe Routes to Schools. The rest is split: 50% to the state DOT, 30% to counties, and 20% to cities (with 1.37% of the county share to small counties). Counties under 200,000 registered vehicles get money by July 31, based on road miles per registered vehicle, for non‑state county roads. Small cities (5,000 people or fewer) have a dedicated account funded with $3,000,000 plus $3,000,000 each year for local roads. The DOT also must give the Travel Information Council $12,160,000 each year to manage and improve roadside rest areas.
Lower fee for oversize single-trip permits
Beginning July 1, 2029, the road‑use assessment for oversize single‑trip, nondivisible loads is $0.079 per ESAL‑mile. This replaces the prior $0.109 per ESAL‑mile rate.
Higher gas, title and registration costs
Gas taxes are higher: 46¢ per gallon, up from 34¢. Annual registration costs rise. For example, passenger vehicles now cost $85 per year (was $43). Trailers, mopeds, and low‑ or medium‑speed electric vehicles also rise by $42 per year. You pay added yearly fees by MPG: $20 for 0–19 MPG, $25 for 20–39 MPG, $65 for 40+ MPG. Electric vehicles pay an extra $145 per year. The standard vehicle title fee jumps to $216 (was $77).
Stricter dyed-diesel rules and penalties
You may not run a vehicle on Oregon highways with dyed diesel unless a U.S. agency authorizes it or you qualify for a listed refund. Using dyed diesel on highways is a Class A traffic violation. Civil penalties can reach $10 per gallon of tank capacity or $1,000, whichever is greater, plus the tax that would have been owed. Any unpaid fuel tax or dyed‑diesel penalty becomes a lien on the vehicle. Fuel definitions are updated: biodiesel and renewable diesel count as diesel, and dyed diesel is excluded from motor vehicle fuel.
Tougher fuel and truck enforcement rules
Drivers must stop at posted inspection areas and submit to fuel‑tank checks. Refusing is a Class B misdemeanor. Officers can cite or arrest for dyed‑diesel misuse and other added offenses, and drivers and carriers must follow directions at truck scales. Fuel sellers must give detailed invoices showing tax and vehicle ID for motor‑use sales. People harmed by a carrier’s grossly negligent or willful violations can sue and may receive up to triple damages.
New per-mile taxes on heavy trucks
Starting July 1, 2027, new per‑mile tax rates apply by declared combined weight (Table A) and by axle count for 80,001 lb and up (Table B). On July 1, 2029, a special per‑mile table for electric heavy vehicles (Table E) starts. To get dollars, divide the mills by 1,000 and multiply by miles driven. Related trucking and fuel rule changes also become operative on July 1, 2027 and July 1, 2029.
New per-mile truck tax rates in 2029
Starting July 1, 2029, new per‑mile truck tax rates apply by weight (mills per mile): 26,001–32,000: 55.1; 32,001–38,000: 64.8; 38,001–44,000: 74.1; 44,001–50,000: 82.5; 50,001–56,000: 95.6; 56,001–62,000: 103.2; 62,001–68,000: 119.9; 68,001–74,000: 130.9; 74,001–80,000: 181.2; 80,001–105,500: 189.8. Compute tax as mills divided by 1,000 times miles. From July 1, 2027, the declared combined weight used is the registration weight. From July 1, 2029, Table A applies to non‑electric trucks and Table E to electric trucks.
Per-mile charge or $340 for some cars
Starting July 1, 2027, owners or lessees of subject cars pay a per‑mile road charge equal to 5% of the per‑gallon fuel tax in effect when billed. You may instead choose a flat $340 yearly payment. While this charge applies, the car does not owe the extra registration surcharges. The program phases in: electric cars for reporting periods starting January 1, 2028, and hybrid or plug‑in hybrids for periods starting July 1, 2028.
New carrier fees and flexible reporting
DOT sets an annual IFTA fee by rule, with no $650 cap, and may scale it by fleet size. At a carrier’s request, DOT may allow quarterly reporting, due May 31, Aug 31, Nov 30, and Feb 28. Reinstating suspended authority costs a $25 fee. Collected carrier fees go to the Motor Carrier Account; household‑moves penalties fund a Consumer Protection Household Moves Account. During emergencies, the Director may temporarily suspend some fuel‑tax and dyed‑diesel rules.
Annual fee options for log and dump trucks
Starting July 1, 2027, log and pole carriers may choose an annual fee of $10.50 per 100 pounds of declared weight. Dump‑body trucks hauling raw nonmetallic products may choose $16.98 per 100 pounds. Starting July 1, 2029, annual‑fee rates split by power: logs—$10.94 per 100 pounds for electric trucks, $7.57 for others; dump‑body—$17.69 electric, $12.25 non‑electric. Monthly payment and reporting remain available.
Per-mile privacy and rental fee limits
Starting July 1, 2030, personal data for the per‑mile program is kept confidential. Location and daily use records must be destroyed within 30 days after payments or disputes finish. Certified providers may keep up to 10% of per‑mile charges for admin costs. Rental car contracts cannot add a per‑mile surcharge above a reasonable estimate of the company’s actual cost. For reporting periods that begin on or after July 1, 2031, volunteers in the per‑mile program get lighter reporting rules until they are required to join.
Limits on local car fees; EV fee ends
A county or district cannot set a car registration fee that makes your total local fee higher than the sum of the state base fee and the state extra fee. Local fees are collected and shared through agreements with ODOT. A car that is exempt from the state extra fee still owes any local fees. Beginning July 1, 2031, the separate $145 electric‑vehicle registration surcharge ends.
Payroll tax for transit drops to 0.1%
Beginning January 1, 2028, the statewide transit payroll tax rate is 0.1% of wages. Employers must withhold and report it. Your yearly savings equals your Oregon‑taxed wages times 0.001.
Stronger oversight of DOT projects
The law strengthens oversight of transportation spending and big projects. The Commission creates a Continuous Improvement Advisory Committee that meets monthly and reports quarterly. The Division of Audits performs performance audits of DOT and State Highway Fund spending every two years. The Joint Committee on Transportation reviews major project budgets and changes each quarter, and the Governor now appoints the DOT Director with Senate confirmation. Two temporary audit and cost‑allocation review requirements end January 2, 2027, and committee rule changes take effect January 1, 2026.
Stronger ODOT audits and project reviews
An outside performance audit of the transportation department is required and runs through January 2, 2027. For highway projects costing $15,000,000 or more, ODOT must prepare a written costs‑and‑benefits report during scoping. If a city or county asks to expand a project without funding the added scope, it must send the request to the state commission when the change raises costs by at least 10% (under $25,000,000 projects) or 5% ($25,000,000 or more).
Higher wage tax for Oregon workers
Beginning January 1, 2026, the payroll tax on wages doubles from 0.1% to 0.2%. Employers must withhold it when they pay you and send it to the state. The added annual cost equals your wages times 0.002.
More DOT access to carrier records and sites
DOT may enter carrier premises and vehicles to inspect and test equipment. Carriers must provide required information, answer questions under oath, and return responses on time. Declared combined weight means the weight on the registration, and DOT may audit it. DOT may use the registration card as the tax enrollment document, and you may not load beyond the stated combined weight. Interstate carriers must meet federal registration and insurance rules and hold state authority or a temporary pass before operating in Oregon.
Lodging taxes can’t fund state rest areas
The Travel Information Council cannot use local or state transient lodging tax money to manage, maintain, improve, or develop the listed state rest areas. Rest area work must use other funding sources.
IFTA checks and new fuel trip permits
Failing to comply with an international fuel tax agreement (IFTA) is now a Class A traffic violation. Out‑of‑state carriers without IFTA must get a 3‑day fuel trip permit before operating certain heavy vehicles; each vehicle is limited to three permits per year, and DOT sets the fee. Vehicles with listed Oregon registrations or a valid IFTA license are exempt. DOT can enter fuel dealers’ or brokers’ business premises during hours to inspect records and equipment. Money held by an IFTA or proportional registration clearinghouse is not public funds while it is being held.
Old fuel and toll statutes repealed
The law repeals the statewide toll statute and two older fuel or carrier statutes. ORS 383.150 is repealed. ORS 319.665 and ORS 825.486 are repealed. ORS 319.890 is repealed on July 1, 2031. Practical effects depend on replacement rules and programs.
Toll Program Fund and bond pledges
The state creates a Toll Program Fund to hold toll revenues, federal money, bond proceeds, and other sources. The fund can pay for studies, land, construction, operations, maintenance, and related highway improvements. The transportation department may pledge the fund for bonds and create subaccounts and trusts for repayment. It cannot back another government’s or private debt unless a binding repayment agreement with interest is in place.
Fair-share study and automatic rate cuts
The state will review how it studies highway cost sharing and report by June 30, 2026. If a later study shows heavy or light vehicles are overpaying (equity ratio 1.05 or more) and lawmakers do not act in 120 days, the department must lower per‑mile fees or fuel taxes on or after September 1 of odd years to bring that class to 1.045. Fuel tax changes are rounded to the nearest 0.1¢ per gallon. The department must repeal those rules if lawmakers adjust revenues themselves.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Committee JSSTF
Affiliation unavailable
Roll Call Votes
Senate vote • 9/29/2025
Third reading. Carried by Pham. Passed.
Yes: 18 • No: 11
Senate vote • 9/29/2025
Motion to suspend the rules to amend the measure on the floor with -9 amendments failed.
Yes: 11 • No: 17
House vote • 9/1/2025
Third reading. Carried by McLain. Passed.
Yes: 36 • No: 12
legislature vote • 8/31/2025
JSSTF: Heard and Reported Out with Amendments
Yes: 14 • No: 10
Actions Timeline
Chapter 1, (2025 Laws): Effective date December 31, 2025.
11/13/2025HouseGovernor signed.
11/7/2025HousePresident signed.
10/8/2025SenateSpeaker signed.
10/2/2025HouseVote explanation(s) filed by Sollman.
9/29/2025SenateThatcher declared potential conflict of interest.
9/29/2025SenateThird reading. Carried by Pham. Passed.
9/29/2025SenateMotion to suspend the rules to amend the measure on the floor with -5 amendments failed.
9/29/2025SenateMotion to suspend the rules to amend the measure on the floor with -9 amendments failed.
9/29/2025SenateThird reading.
9/29/2025SenateCarried over to 09-29 by unanimous consent.
9/26/2025SenateCarried over to 09-26 by unanimous consent.
9/22/2025SenateCarried over to 09-22 by unanimous consent.
9/19/2025SenateCarried over to 09-19 by unanimous consent.
9/17/2025SenateTaken from 09-03 Calendar and placed on 09-17 Calendar by unanimous consent.
9/3/2025SenateSecond reading.
9/2/2025SenateRecommendation: Do pass the A-Eng. bill.
9/2/2025SenateFirst reading. Referred to Transportation Funding Committee.
9/1/2025SenateVote explanation(s) filed by Hartman, Levy E, Nguyen H, Rieke Smith.
9/1/2025HouseThird reading. Carried by McLain. Passed.
9/1/2025HouseSecond reading.
8/31/2025HouseRecommendation: Do pass with amendments and be printed A-Engrossed.
8/31/2025HousePublic Hearing and Work Session held.
8/31/2025HouseReferred to Transportation Funding.
8/29/2025HouseFirst reading. Referred to Speaker's desk.
8/29/2025House
Bill Text
Enrolled
9/29/2025
A-Engrossed
8/31/2025
House Amendments to Introduced
8/31/2025
JSSTF Amendment -10 (Proposed)
8/31/2025
JSSTF Amendment -12 (Proposed)
8/31/2025
JSSTF Amendment -13 (Proposed)
8/31/2025
JSSTF Amendment -14 (Proposed)
8/31/2025
JSSTF Amendment -17 (Combined)
8/31/2025
JSSTF Amendment -18 (Combined)
8/31/2025
JSSTF Amendment -2 (Proposed)
8/31/2025
JSSTF Amendment -20 (Adopted)
8/31/2025
JSSTF Amendment -3 (Proposed)
8/31/2025
JSSTF Amendment -4 (Proposed)
8/31/2025
JSSTF Amendment -5 (Proposed)
8/31/2025
JSSTF Amendment -6 (Proposed)
8/31/2025
JSSTF Amendment -8 (Proposed)
8/31/2025
JSSTF Amendment -9 (Proposed)
8/31/2025
Introduced
8/28/2025