Oregon Legislature Races to Meet March 8 Deadline on Gas Tax, Data Centers, and Budget Cuts
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The Oregon House gave final approval to move the gas tax referendum from November's general election to May's primary election, with Governor Tina Kotek signing the bill into law Monday evening. The measure passed with a 31-20 margin, with five Democrats joining Republicans in support. OPB reports that Democrats argue the earlier vote will give state and local governments certainty as they plan transportation budgets, though Republicans contend the move could create legal challenges and disenfranchise voters due to lower primary turnout.
On the business front, lawmakers have blocked new data center projects from receiving expanded enterprise zone tax breaks until summer 2027. This change emerged as a compromise after Governor Kotek's House Bill 4084 faced criticism for potentially expanding tax benefits to data centers. According to OPB, data centers currently reaped more than 45 million dollars in tax benefits from standard enterprise zones last year, with that figure jumping to 85 million this year. The state is home to approximately 125 data centers, with major facilities operated by Meta, Apple, and Amazon primarily located in the Portland area and Central Oregon.
On the budget front, lawmakers still need to balance Oregon's 37.3 billion dollar general fund budget. OPB reports that Democrats have largely closed an expected 650 million dollar gap by eliminating over 300 million dollars in tax breaks created by congressional Republicans last year. However, the state is still cutting around 128 million dollars in spending through other means.
Transportation funding faces additional pressure as BikePortland reports that lawmakers are considering cutting 25 million dollars from safe routes and bike path programs to help balance the Oregon Department of Transportation's budget. This includes 17 million dollars from the Safe Routes to Schools grant program and 8 million dollars from the Community Paths program.
On housing, Portland officials said the city is seeing promising results from a new program that temporarily waives certain development fees. According to OPB, the program has shown "promising results" in its first five months, though data remains inconclusive about its broader impact on housing construction.
Looking ahead, listeners should watch for the legislature's final actions before the March 8 deadline, particularly on transportation funding, Governor Kotek's housing expansion bill, and budget negotiations. The May primary election will also determine the fate of Oregon's transportation tax referendum.
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