Oregon Referendum 120 challenges provisions of House Bill 3991 that would increase the state's gas tax from $0.40 to $0.46, the transit payroll tax from 0.1% to 0.2%, and vehicle registration fees. HB 3991 was passed during a special session in September 2025 along party lines, with Democrats supporting and Republicans opposing.
The referendum was filed by State Sen. Bruce Starr (R), State Rep. Ed Diehl (R), and the Taxpayer Association of Oregon. In Oregon veto referendums, a 'No' vote overturns the targeted legislation. The vote is scheduled for May 19, 2026 -- earlier than most other ballot measures.
Tax increases burden working families and should be subject to the people's consent. This referendum gives citizens the opportunity to reject tax hikes passed on a party-line vote.
"For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?"
— Luke 14:28 (KJV)