DRIVERS could soon be hit with a wave of new costs, including a $340 annual charge, under a wide-ranging proposal targeting everything from gas pumps to electric vehicles.
The plan also tacks on new taxes for car sales and hikes fees for licenses and renewals.
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Even gas prices are set to climb under the measure, which lawmakers rolled out Monday.
The changes are part of a 100-plus-page bill being debated in Oregon’s Legislature.
It’s part of Oregon’s House Bill 2025, also known as the Transportation Reinvestment Package.
One of the most controversial parts is a mandatory road usage charge for electric vehicle owners.
Starting July 1, 2026, EV drivers would have to pay per mile driven or opt for a $340 flat fee, The Bulletin reported.
The per-mile charge would be pegged at 5% of the state’s gas tax.
According to Bike Portland, the gas tax itself would rise from 40 cents to 50 cents per gallon in 2026 and 2027.
In 2028, another 5 cents would be added, and by 2029 it would be tied to inflation.
New cars would be hit with a 2% “transfer tax” on the retail price.
Used cars wouldn’t escape, a 1% tax would apply to those sales.
The registration fee for a new car would more than double, from $43 to $113.
Getting a new driver’s license plate would cost $33, up from $12.
Taking a driver’s skills test at the DMV would spike from $45 to $111.
Renewing a driver’s license would jump from $48 to $74.
What drivers could pay under the new plan
Gas tax:
- Rising from 40 cents to 50 cents per gallon in 2026–2027
- Increasing to 55 cents in 2028
- Indexed to inflation starting 2029
Electric vehicles:
- $340 flat annual fee starting July 2026
- Or pay-by-mile option tied to gas tax rate
Car registration:
- New vehicle fee: $43 to $113
- License plate fee: $12 to $33
DMV fees:
- Driver’s test: $45 to $111
- License renewal: $48 to $74
Car sales tax:
- 2% transfer tax on new vehicles
- 1% tax on used vehicle sales
Payroll tax (for transit funding):
- Increase from 0.1% to 0.3% by 2030
Delivery fleets:
- New $20 per vehicle annual permit fee
Eight-year ID cards would increase from $44 to $66.
The bill would also raise the state payroll tax for public transit from 0.1% to 0.3% by 2030.
A new $20-per-vehicle permit fee would be charged to corporate delivery fleets.
Oregon dropped earlier plans to raise the $15 bicycle tax, which will now stay the same.
Lawmakers say the cash, which is expected to generate $125 million a year, is going toward overdue projects.
For example, officials say it would fund the state’s “Anchor Project Account” — covering major efforts like the I-5 Rose Quarter and the Abernethy Bridge.
The bill also sets aside money for bike lanes, safer school routes, and fixing “orphan highways.”
Another $125 million would go to the state’s “Great Streets” program for safer road designs.
There’s also $25 million per year marked for Safe Routes to Schools — and $5 million annually for wildlife-vehicle collision prevention.
The initial version of the bill changed within hours of its release and is still being debated.
