Bill > SB3

This bill modifies Oregon's existing highway cost allocation study process by introducing new provisions for automatic tax adjustments. Currently, the Oregon Department of Administrative Services conducts a biennial study to determine whether different vehicle classes are paying their fair share for highway maintenance and improvement. The bill now mandates that if the study reveals an imbalance in highway cost contributions (indicated by an "equity ratio" greater than one for either light or heavy vehicle classes), the department must automatically reduce either weight-mile taxes for heavy vehicles or fuel taxes for light vehicles, unless the Legislative Assembly takes action within 120 days to address the imbalance. Specifically, on or after September 1 of odd-numbered years, the department can unilaterally decrease tax rates to achieve equity between vehicle classes if the legislative body does not intervene. The bill also includes a provision for the department to repeal these tax rate reductions if the Legislature subsequently adjusts revenue sources to resolve the equity issue. The act will take effect on the 91st day after the 2025 regular legislative session adjourns, providing a clear timeline for implementation of these new tax adjustment mechanisms.

Transportation and Infrastructure

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB3