With Gas Tax Revenues Falling, Oregon Dems Could Require EV Drivers to Pay by the Mile

With a massive hole in its transportation budget, Oregon lawmakers want to have electric vehicle drivers pay a fee to fund programs that used to be funded by gasoline tax receipts.

In a Monday vote, the Oregon House approved a 10-year, $4.3 billion conglomeration of tax and fee increases, according to the Oregon Capital Chronicle.

The bill needs Senate approval, as well as that of Gov. Tina Kotek. Democrats control both the legislative and executive branches in Oregon.

🚨 Oregon can’t afford a $4.3 BILLION tax hike. 🚨
⁰Families are already struggling under record high inflation in Oregon, and now Democrats passed one of the largest taxes in state history.

94% of Oregonians who testified opposed this transportation bill, but politicians in… pic.twitter.com/WVYnsD4G7a

— Jeff Helfrich (@JeffHelfrichOR) September 2, 2025

What’s known as a road usage program will eventually be phased in. Oregon has had a voluntary program known as OReGo that offered EV owners lower registration fees if they paid the two cents per mile usage levy, according to Oregon Public Broadcasting.

That will go away with the new program, which is mandatory. EV owners can either pay the usage fee or pay $340 per year.

EV users are not the only ones who will pay more.

The gasoline tax will increase from 40 cents per gallon to 46 cents per gallon.

Registration fees will almost double from $43 to $85 for passenger vehicles, while what the state calls utility vehicles and some EVs will find their registration fee increasing from $63 to $105.

Passenger vehicle title fees will rise from $77 to $216.

House Republican Leader Christine Drazan said 94 percent of those who commented on the proposal opposed it.

“I could go on and on and on with the voices of Oregonians who are asking for this body to hear them,” Drazan said.

The state was facing a $300 million transportation budget gap, according to the Associated Press.

Under the road usage plan, drivers report their mileage using either a smartphone app or the technology built into the vehicle, Scott Boardman, a policy adviser for the transportation department, said.

Hawaii is already using the system, according to a state government news release.

The Hawai’i Department of Transportation began its program on July 1.

Hawaii charges EV drivers $8 per 1,000 miles, with the maximum a driver can pay capped at $50.

“Instead of paying based on what type of car you drive — or can afford — a road usage charge means vehicle owners will pay only for how much they actually drive. It’s a much fairer way for everyone to contribute to keeping our roads and bridges safe and operable,” Hawaii Department of Transportation Director Ed Sniffen said.

“We are starting initially with EVs and aim to phase all light-duty passenger vehicles into the program by 2033. Hawaii is fortunate since we can use our annual safety inspection program, making the process easy and cost-effective,” he said.

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