Legislators consider 4% tax on car tires to fund wildlife crossings, rail, public transit

Yahoo

04-03-2025

A wildlife passage beneath U.S. Route 97 south of Bend, pictured here, has reduced wildlife and vehicle collisions by 90% on the highway, according to data from the Oregon Department of Fish and Wildlife. (Photo by Oregon Department of Fish and Wildlife)
Adding a 4% tax to the sale of new car tires in Oregon could generate up to $20 million a year for public transit, reducing tire pollution and building wildlife crossings, according to lawmakers proposing the new tax. But ahead of its first public hearing, hundreds of Oregonians have submitted testimony in opposition, claiming they will disproportionately bear the burden of the tax.
The tax proposed in House Bill 3362 would apply to new car tires for passenger vehicles and light-duty trucks, such as an Amazon delivery van. It would add about $6 to the cost of each new tire bought by the average Oregonian, according to state Rep. Ken Helm, D-Beaverton, who is sponsoring the bill, along with Chris Gorsek, D-Troutdale. In exchange, the state transportation department would get reliable funding for projects that it otherwise has had to fight to fund with money from the state's general fund.
The tire tax would be in addition to a state gas tax Oregonians pay everytime they fill their tanks – about 40 cents a gallon – that goes to the Oregon Department of Transportation for road maintenance, bridges and other statewide transportation costs. That money is restricted and not often able to cover projects such rail and wildlife crossings. Helm said the proposed tire tax is a low tax that will be felt equally among most Oregonians.
'When we have explored other taxes in the past, we have attempted to adopt ones that are experienced broadly over a large number of people in the state, and at a low rate, so that we try to minimize that cost, and this is one that follows that formula pretty well,' he said.
Helm needs three-fifths of Oregon's House and Senate to approve it. Rep. Shelly Boshart Davis, a trucking company owner and Republican from Albany, said she's concerned that the tax could be increased in years ahead.
'If everybody in this building said, 'It's just a little tax, don't worry about it. It's only $25. It's only $125,' those add up. And all of a sudden you're paying thousands of dollars extra just to live in this state so these people can get their pet projects,' she said.
More than 1,200 pieces of written testimony have already been submitted ahead of the first public hearing on the tax Tuesday. About 90% of those express opposition to the bill.
Among those who submitted written testimony was state Rep. Bobby Levy, R-Echo, who said the tax would unfairly penalize rural Oregonians and industries in her district in eastern Oregon.
'Unlike urban residents, many eastern Oregonians drive long distances daily for work, school, medical appointments, and essential services. Our roads are often rougher, our weather more extreme, and our livelihoods — whether in agriculture, ranching, or small business — depend on vehicles in good working condition,' she wrote. 'This tax would unfairly penalize rural Oregonians, who already face higher transportation costs due to fuel expenses, vehicle maintenance and limited public transit options.'
The tax would not apply to tires on semi trucks or tractors and other farm equipment. Helm said heavy duty truck owners already pay a state tax based on their mileage and the weight they carry per mile.
Three-quarters of the tax revenue would support the Department of Transportation's public transit and rail projects. It would also support collaborative projects between the transportation department, the Oregon Department of Fish and Wildlife and the Department of Environmental Quality to curb water pollution from tire compounds that are leaching into waterways and threatening the health of salmon in the Northwest.
The other 25% of revenue would go toward projects that help animals safely cross and get around major roads. Helm said those projects need support outside of the general fund.
Helm has advocated for state funding for wildlife crossings for several years, and he said they're making a difference. As an example, he said, the Oregon Department of Fish and Wildlife tracked progress at the Lava Butte wildlife crossing, an underpass beneath U.S. Route 97 south of Bend, and found that since 2013 it has reduced wildlife and vehicle collisions by 90%.
Helm said the large amount of testimony in opposition to the proposal so far shows there is a 'cognitive dissonance' between what people want when it comes to protecting wildlife and vehicles on roads, and what they're willing to do to pay for it. Polling data he commissioned, he said, showed 86% of Oregon voters want the state to build more wildlife crossings, and that 75% also support increasing fees and funding to achieve it.
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