Gasoline taxes in the state of Oregon are set to increase just as many will be celebrating the New Year in a matter of months. The State of Oregon will be increasing gasoline taxes 6-cents per gallon on January 1, 2011.
Many motorists may have forgotten about the increase by now- lawmakers passed the bill back in 2009. Why has the increase taken so long? It was tied to job growth, but there was also a deadline in case there was no growth. That deadline was January 1, 2011.
As it turns out, the increase in gasoline taxes was to take place after two consecutive quarters of job growth. In case no one realizes, we're still in the middle of an economic slowdown, and that hasn't yet happened, leaving the increase to take place at the deadline.
The same transportation bill that is increasing gasoline taxes has likely already impacted you- some motorists have been seeing their vehicle-related fees rise. Thank the same bill that is increasing taxes for that.
No matter what, the increase comes at a lousy time as not only New Jersey, but much of the nation is suffering from the worst economic slowdown in decades. With some folks finding temporary work miles away for little pay, this increase- which amounts to a 25% increase in gas tax- will add up.
Oregon's current state tax amounts to nearly 24-cents per gallon. After this 6-cent increase, it will be 30-cents per gallon. Don't forget the federal tax of 18.4-cents per gallon, and other local taxes.
The new tax will bring Oregon inline with what other West Coast states are paying. Currently, Oregon pays a total of 43.4-cents per gallon, according to the API. California pays nearly 68-cents per gallon, and Washington pays 56-cents per gallon. After the increase, Oregon will pay nearly 50-cents per gallon, still below (doesn't make it any better), other surrounding states.
Other states should be mindful of what's going on in Oregon- many states are dealing with budget problems, and low gasoline taxes are a prime target for revenue hungry states.