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What’s Up Salem Besties!
This summer was absolutely legendary.
Made some killer memories with my kids that I'll carry forever. Met an amazing woman and fell hard.
And professionally, watching Saltwater Wellness believe in What's Happening Salem enough to become our title sponsor felt like validation of everything I've been building.
If I'm being honest, I'm having trouble letting this season go. It was that good.
Got to connect with a ton of you this season. Every email and message is gold, even when I can't get back to everyone right away, know that I see them all.
Feel pretty fortunate to make a living doing what I love. Getting paid to create content and pump up Salem? That's the dream right there. I'd be doing this stuff anyway, so the fact that it's my actual job never gets old.
Thanks for being part of this ride. Can't wait to see what we build next.
Cheers!
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What the New Oregon Transportation Tax Means for Salem
The bottom line: Salem residents will pay more for gas, car registration, and see a small deduction from paychecks, but in return, we get better road maintenance, winter plowing, and transit services.
What Just Happened?
Earlier today, Oregon's House passed House Bill 3991 by a vote of 36-12, barely getting the minimum votes needed. The bill now heads to the Senate for a vote, likely Wednesday. This happened during a special session after 483 ODOT employees were laid off in July, about 10% of the workforce, when lawmakers couldn't agree on funding earlier this year.
What's Changing (Starting January 1, 2026)
Gas Tax Goes Up 6 Cents
From 40¢ to 46¢ per gallon, expected to raise about $90 million per year
If you fill up once a week with 12 gallons, that's about $37 more per year
Money gets split: 50% to the state, 30% to counties, 20% to cities, so Salem gets a share automatically
Car Fees Double
Registration fees: $43 → $85 per year for regular cars
Title fees when you buy/sell: $77 → $216
Electric vehicles pay an extra $30 on top of existing fees
Small Paycheck Deduction
Transit payroll tax doubles from 0.1% to 0.2% until January 1, 2028
On a $50,000 salary, that's about $100 per year (roughly $8 per month)
This money goes to transit agencies like Cherriots
Electric Vehicle Changes
Electric and hybrid drivers will need to join Oregon's OReGO program, which charges per mile driven
What This Means for Salem Specifically
Better Roads and Winter Services The funding helps prevent more cuts to road maintenance crews. Without this funding, ODOT had already laid off 483 workers and was planning to cut services like snow plowing, pothole repairs, and emergency response. Salem drivers use state highways like I-5 and OR-22 daily, so keeping these maintained matters for everyone's commute.
Cherriots Gets Help The temporary payroll tax increase provides funding to transit agencies through 2027. This should help Cherriots avoid service cuts in the near term, though they'll need a longer-term funding solution after 2027.
Local Street Money Because Salem gets a share of gas tax revenue based on population, the city will have more money for neighborhood street repairs, signal work, and pedestrian improvements without having to cut other city services.
Jobs in Salem ODOT's headquarters are in Salem, along with DMV offices, so preventing further layoffs helps protect local state jobs. Salem also has contractors and suppliers who work on road projects—steady funding helps keep those jobs too.
The Reality Check
This Isn't Popular Those who oppose this tax increase are frustrated with rising costs and don't trust ODOT to spend money well.
What Supporters Say
Governor Tina Kotek emphasized the basic safety needs: "What we're going to do is make sure that your roads, your bridges are safe and maintained no matter what time of the year it is. And that's why that package has to pass." She also addressed concerns about using existing funds instead of new taxes: "The new funding being proposed is the most reliable consistent way to make sure the Department of Transportation is funded to provide basic services. Most of the money that is sitting in the department's budget that can't be tapped is going to specific projects around the state."
What Critics Say
Marion County Commissioner Danielle Bethell expressed strong opposition: "The process in which the Oregon legislature is going about passing one of the largest payroll taxes in history is completely unacceptable. The Democrat super majority promised Oregonians on their listening tour that would be heard. The bills presented during the long session, and even today are not what Oregonians stated they wanted during the statewide transportation tour. ODOT doesn't need additional revenue, it needs to figure out how to prioritize its projects, partner with local jurisdiction and get back to the basics."
It's a Short-Term Fix Supporters admit this is just a Band-Aid. It's less than one-third the size of the original $14.6 billion proposal that failed earlier this year. The payroll tax increase expires in 2027, so lawmakers will need to figure out long-term solutions soon.
The Bill Almost Failed It only passed because one Republican, Rep. Cyrus Javadi from Tillamook, voted with Democrats. He said the cost of doing nothing would be worse than the taxes.
What's Next?
This week: Senate votes (probably Wednesday)
January 1, 2026: Most changes take effect
January 1, 2028: Payroll tax increase expires unless renewed
Your Real-World Impact
For a typical Salem household:
Gas: About $37 more per year
Paycheck: About $100 less per year (if earning $50,000)
Car registration: $42 more when you renew
Car buying/selling: $139 more in title fees
The bill still needs Senate approval, but if it passes, Salem residents will start feeling these changes in their wallets and on the roads come January.
Sources:
KGW — “Oregon House passes transportation bill; Senate convenes next”: https://www.kgw.com/article/news/politics/oregon-legislature-transportation-bill-votes/283-29defc6a-47b5-48d6-90fb-8919a786d99f
OPB — “Gov. Tina Kotek’s transportation funding package clears Oregon House, moves to Senate”: https://www.opb.org/article/2025/09/01/transportation-bill-oregon-house/
OPB — “Oregon road funding bill, slightly slimmer, moves forward”: https://www.opb.org/article/2025/08/31/oregon-road-funding-bill-slightly-slimmer-moves-forward/
Thanks for keeping up with Salem this week!
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See you soon.