A veto referendum targeting the repeal of parts of a recently passed transportation funding bill, including an increase in the state’s gas tax, qualified for the Nov. 3, 2026, ballot on Dec. 30. The Oregon secretary of state reported that 163,451 of the 191,828 signatures accepted for verification were valid—a signature validity rate of 85%. The required number of signatures to qualify for the ballot was 78,116 (4% of the votes cast in the last gubernatorial election).
No Tax Oregon is sponsoring the veto referendum. It was filed on Nov. 10 by State Sen. Bruce Starr (R-12), State Rep. Ed Diehl (R-17), and Jason Williams, director of the Taxpayer Association of Oregon. An initial round of 193,987 signatures was submitted to the secretary on Dec. 12. The campaign submitted an additional 56,962 signatures on Dec. 29.
The referendum targets several sections of House Bill 3991, which was passed along party lines in September during a special session and signed by Gov. Tina Kotek (D) on Nov. 7. The veto referendum challenges provisions of the bill that would increase the state's gas tax from $0.40 to $0.46, payroll tax for transportation from 0.1% to 0.2%, and vehicle registration fees. The Legislative Revenue Office estimated the increases would generate $791 million in the 2025-27 budget cycle. With the qualification of the veto referendum, the targeted provisions of the law, which were set to take effect on Jan. 1, will not take effect until after the 2026 election if the bill is upheld by voters.
During the legislative process, 1,134 pieces of written testimony were submitted providing support, opposition, or a neutral perspective. In support of the bill, Gov. Kotek wrote, “The imminent threat of service cuts demands urgency and investment, and it is the reason I called a special session. My office – in partnership with legislators, local partners, and key stakeholders – designed Legislative Concept 2 to provide the necessary maintenance and operations funding to prevent these harmful cuts from happening.”
Following the certification of the referendum, sponsor Rep. Ed Diehl (R-17) said the legislature needs to reprioritize funding of transportation projects. Diehl said, “We’re paying for electric vehicle car chargers. We have a social equity office. We have climate justice initiatives. We have hundreds of millions of dollars in reserves on projects that will never transpire as currently designed. It’s a waste, but the Legislature is prioritizing those things over what the Oregon people want.”
There are 23 states that allow citizens to initiate veto referendums. Oregon is one of 18 states where a 'yes' or 'for' vote means that the targeted legislation should be upheld, and conversely, a 'no' or 'against' vote means the law should be repealed. In three states, a 'yes' or 'for' vote means that the challenged legislation should be repealed, and in California and Nebraska voters are given explicit language, such as “Keep the law” or “Retain.”
Oregon voters last voted on a veto referendum in January 2018, when they approved Measure 101 to uphold certain assessments and taxes on healthcare insurance and the revenue of certain hospitals to provide funding for Medicaid expansion enacted by House Bill 2391. Since 1900, Oregon voters have decided on 67 veto referendums—upholding 27 laws and repealing 42.
This is the first measure to be certified for the 2026 ballot in Oregon. As of Jan. 1, 2026, 73 ballot initiatives have been filed with the secretary of state, with eight cleared for signature gathering. Oregon statewide ballots see, on average, between 62 and 63 ballot initiatives filed every cycle, and four initiatives qualify.
Additional reading: