Local Gas Tax

Streets and roads are critical assets for local communities. In many cities, the State Highway Fund is the primary source of street funding. 

The federal government and State of Oregon levy gas taxes as a source of revenue for federal, state, and local roads and highways. These gas taxes assess a certain number of cents per gallon of fuel. In an effort to alleviate the backlog of street projects, cities have looked to local funding options, such as local fuel dealer license taxes, or “local gas taxes.” In Oregon, local gas tax ordinances levy a business license tax on fuel dealers. The amount of tax levied is set as a certain number of cents per gallon of motor vehicle fuel sold by the dealer. HB 2001 (section 27), enacted by the 2009 Legislature, requires that a city, county or local government must submit the proposed new or increased gas tax to the electors for their approval, prior to enacting or amending any charter, provision, ordinance, resolution or other provision taxing fuel for motor vehicles.