Bill > SB160

This bill eliminates the state payroll tax that was previously used to fund transportation improvements and public transit services in Oregon. Specifically, the bill repeals several existing statutes related to the transportation tax (ORS 320.550, 320.555, and 320.560) and makes consequential amendments to various other laws to remove references to this tax. The Statewide Transportation Improvement Fund will continue to exist but will now be funded through alternative means, such as legislative appropriations and other transfers. The bill maintains the existing framework for distributing transportation funds, including provisions for supporting transit services for older adults and individuals with disabilities, and requirements for public transportation improvement plans. The changes will apply to calendar years beginning on or after January 1, 2026, and the bill will take effect 91 days after the 2025 legislative session adjourns. The primary impact is the removal of the specific payroll tax mechanism that previously funded transportation programs, potentially requiring alternative funding sources to maintain current transportation services and improvements.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB160