Oregon Legislature Races to Deadline: Gas Tax Vote Moved, Data Center Tax Breaks Frozen, Budget Cuts Loom
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Oregon Legislature Races to Deadline: Gas Tax Vote Moved, Data Center Tax Breaks Frozen, Budget Cuts Loom
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The Oregon House gave final approval yesterday to move a contentious gas tax referendum to May's primary election instead of November's general election[1]. The measure, Senate Bill 1599, includes a six cent gas tax increase and additional vehicle fees designed to address the Oregon Department of Transportation's more than 200 million dollar shortfall and prevent hundreds of layoffs[5]. Governor Tina Kotek signed the bill, but Republicans plan to challenge the move in court in a final attempt to shift the vote to November[5].
On the data center front, Oregon lawmakers approved a significant change Monday that blocks new data center projects from receiving enterprise zone tax breaks until summer 2027[1]. This represents a reversal for Governor Kotek, who had proposed expanding the enterprise zone program through House Bill 4084[7]. Data centers currently save more than 450 million dollars annually through Oregon tax breaks, with the industry receiving 85 million dollars in tax incentives this year alone[7]. The governor's broader economic development bill, which would speed up permitting and offer property tax breaks, remains stalled as the legislature works through its final days[2].
Budget writers are proposing to leave more than 130 state jobs vacant to help close a roughly 128 million dollar spending gap[6]. Democrats largely closed an expected 650 million dollar shortfall by eliminating more than 300 million dollars in tax breaks created by federal Republican legislation[6]. However, transportation funding proposals include cutting 17 million dollars from the Safe Routes to School program and 8 million dollars from community paths funding[8].
On infrastructure, Oregon has taken its first step toward acquiring Abiqua Falls, a spectacular 92 foot waterfall located east of Salem near Scott Mills[1]. The Abbey Foundation of Oregon, which currently owns the property, placed it on the market citing a desire to see the land protected under new ownership better able to serve public interest[5]. A vote on acquiring the falls could happen as soon as this week[5].
Portland's new housing incentive program, which temporarily waives certain developer fees, is showing some promising initial results in its first five months[1].
Looking ahead, the legislature faces critical decisions on the Moda Center renovation bill to retain the Portland Trail Blazers and must finalize remaining budget matters before the March 8th deadline[2].
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