Gas Tax Increase begins January 1 [VIDEO]
/SALEM, Ore. - The second of four planned increases in the gas tax goes into effect on January 1, 2020. The increase is part of House Bill 2017, the “Keep Oregon Moving” legislation passed by the Oregon Legislature in 2017.
The tax increase will go toward funding 276 shovel ready projects, 6 of which are located in Klamath County and outlined below.
For the first time, Oregon lawmakers set requirements that ODOT and Oregon cities and counties must meet in order to trigger the increase. The Oregon Transportation Commission sent the Legislature a report outlining how ODOT and local governments have met those requirements on November 26, 2019. Two more 2 cent gas tax increases in 2022 and 2024 are also on deck—but only if ODOT meets additional accountability requirements.
Requirements met
I-205 Projects
The gas tax increase was tied to ODOT completing two specific projects to help address congestion on I-205.
I-205 Corridor Bottleneck ($15.5M). ODOT paved portions of I-205 and constructed new lanes between interchanges in the Sunnybrook and Johnson Creek areas to improve safety and reduce congestion.
I-205 Active Traffic Management ($15.2M). ODOT installed signage giving motorists real-time information about travel times.
Road & Bridge Condition Reports
ODOT worked with Oregon cities and counties to produce a website detailing the condition of the major roads and all Oregon bridges. The site grades the major roads in and through communities as good, fair, or poor so people can see what they’re getting for their increased taxes.
Project Reporting
ODOT also had to provide a list of shovel-ready projects that could be constructed with additional funds and report on the agency’s efforts to address congestion through a number of other important projects in the Portland metro region, including the (I-5 Rose Quarter project, new lanes on OR 217, widening of I-205 between Stafford Road and the Abernethy Bridge, and implementation of tolling.
How the money will be spent
Of the nearly sixty million dollars this increase will raise, 20% goes to Oregon counties, 30% to Oregon cities and 50% to ODOT. ODOT will use its share ($27.9M) of the funds for:
Highway maintenance ($1.7M)
Bridge projects ($11.2M)
Seismic projects ($8.4M)
Preservation and culvert projects ($6.7M)
“Accountability ensures that our state and local transportation agencies are spending taxpayer dollars wisely,” said Governor Brown. “In this report, Oregonians can see exactly how we are building a transportation system that supports economic development, reduces congestion and related vehicle emissions, and creates more sustainable, livable communities,” Brown said.
“The Commission is proud of the excellent work ODOT has done to date to implement the 2017 transportation legislation,” noted Oregon Transportation Commission Chairman, Robert Van Brocklin. “The additional funding that we will see beginning next January as a result of ODOT’s work will allow us to make important new investments, including projects to reduce Portland area traffic congestion. It will also allow us to build new and preserve existing transportation investments in every region of the state. We look forward to continuing the work we have been charged with undertaking to keep Oregon moving.”
This first increase would raise the Oregon gas tax from 34 to 36 cents a gallon. The federal tax is 18.4 cents a gallon. Oregon’s counties and cities are allowed to add their own local gas tax as well. At full implementation in 2024, Oregon’s gas tax will be 40 cents a gallon, still less than the gas tax in either Washington or California.
Shovel Ready Projects
276 shovel ready projects are ready to go as listed inside the HB 2017 Conditional Motor Fuels Tax Increase Accountability Report from December 2019 [embedded below].
Of all of the projects, six are ready to go on infrastructure in Klamath County:
US 97: OR 58 - California Border
Worktype: Bridge
Estimate: $32,350,000US 97: Midland Highway - California State Line
Worktype: Preservation Program Project
Estimate: $5,701,591OR140: Brett Way Extension (KFalls)
Worktype: Modernization
Estimate: $10,859,800OR39 at Washburn Way
Worktype: Operations Intelligent Transportation System
Estimate: $197,000OR36 at Esplanade (Klamath Falls)
Worktype: Operations Signs, Signals & Illumination
Estimate: $490,157OR140 at OR66 Intersection Improvements
Worktype: Safety Improvement Project
Estimate: $1,215,000
Gas Tax Increase Schedule
$.04 - Jan. 1, 2018
$.02 – Jan. 1, 2020
$.02 – Jan. 1, 2022
$.02 – Jan. 1, 2024
$.10 Total