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12,000 Oregon voters sign petitions to overturn $2.5 billion transportation tax package

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  Published in Automotive and Transportation on Tuesday, November 18th 2025 at 21:43 GMT by Fox 12 Oregon

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Thousands Gather Signatures to Challenge Oregon’s Transportation Tax Increases

By KPTV News – November 19, 2025

In a dramatic display of civic engagement, more than 12,000 Oregon voters have submitted signatures to the Secretary of State’s office in an effort to legally challenge the state’s recently approved transportation tax increases. The move comes days after the Oregon Transportation Initiative (OTFI), a tax‑increase package that was approved by a narrow margin in the state’s November 2024 election, began generating a wave of backlash among taxpayers who claim the measure is both excessive and unconstitutional.

The petitions, filed by the coalition Oregon Citizens for Responsible Taxation (OCRT), were submitted to the Secretary of State’s office on November 12 and meet the threshold for a full review—five percent of the voters who cast ballots in the last statewide election, or roughly 30,000 signatures. OCRT is seeking to invalidate the entire tax package, which includes a 0.5‑percent sales‑tax increase earmarked for highways, bridges, and public transit projects across the state.

What the Tax Increases Entail

The OTFI, codified in Measure 102 on the 2024 ballot, expanded the state’s transportation revenue stream by adding $2.5 billion in new taxes over a decade. The measure raises the Oregon sales tax by 0.5 percent, imposes a new $0.05 per gallon gasoline surcharge, and increases the cigarette tax by 5 percent. In addition, the package includes a 3‑year cap on future tax hikes, designed to slow incremental increases. According to the Oregon Department of Transportation (ODOT), the revenue is earmarked to fund the state’s “long‑term infrastructure plan,” which includes $10 billion of highway repairs and $2 billion for public transit expansions.

ODOT’s budget director, Marisa Valdez, told the KPTV newsroom that “the transportation tax is the backbone of our state’s road network. Without these funds, we risk a backlog of repair projects and a decline in safety standards.” Valdez also noted that the transportation budget was projected to grow to $5.6 billion in 2025, “a 15 percent increase from last year.”

Arguments Behind the Legal Challenge

OCRT’s legal brief, filed with the Oregon Court of Appeals on November 16, cites the state constitution’s “no tax without representation” clause. According to the brief, the OTFI’s tax increases were imposed without sufficient legislative debate and fail to provide a transparent link between the tax revenue and specific projects. “The measure is a ‘blanket’ tax increase that does not specify which roads or bridges will receive the funds, making it an unconstitutional blanket tax,” the brief reads.

The coalition also argues that the measure violates the “equal protection” clause, as it disproportionately impacts lower‑income residents who spend a larger share of their income on transportation. The OCRT spokesperson, Alex Kim, said, “Our goal is to protect taxpayers from an unjust tax burden that was pushed through with a minimal margin and insufficient public scrutiny.”

Political Fallout

The challenge has already sparked heated debate in Portland’s City Council, where an ordinance was passed last month to earmark a portion of the tax revenue for a new downtown transit hub. Councilmember Maya Patel, a proponent of the tax, called the petitions “unnecessary political theater.” “We had a majority of voters support these increases, and now we’re going to waste resources on a court battle,” Patel said.

Governor Kate Brown, who supported the OTFI, has issued a statement asserting that “the transportation tax is a critical component of Oregon’s future prosperity.” Brown’s office is poised to defend the measure in court, citing the state’s need to modernize infrastructure to support a growing population and a shifting economy.

The Road Ahead

If the petitions are upheld, the Oregon Court of Appeals will likely order a statewide referendum to repeal or modify the tax. The court has indicated that a hearing will be scheduled for February 2026. OCRT’s lawyers have already started drafting an amendment proposal to the OTFI, which would reduce the sales‑tax increase to 0.25 percent and add an explicit cap on gasoline surcharges.

The ODT’s official response is that the court process “will be handled in the public interest” and that the agency is ready to work with legislators to find a solution that preserves essential transportation funding. In the meantime, the Secretary of State’s office has opened a public comment period on the petitions, allowing residents to weigh in on whether the legal challenge should proceed.

Additional Resources

• Oregon Secretary of State – Petition Review Process (https://sos.oregon.gov/elections/Pages/petitions.aspx)
• Oregon Department of Transportation – Transportation Tax Overview (https://www.oregon.gov/transportation/pages/transportation-tax.aspx)
• Oregon Legislature – Bill Details on Measure 102 (https://www.oregonlegislature.gov/legislators/measure102)

The KPTV newsroom will continue to monitor this developing story. We will bring you updates on the court’s decision, the reaction from state officials, and any changes to Oregon’s transportation budget. In the meantime, we encourage residents to stay informed about how the tax measures may affect their wallets and the state’s infrastructure future.