Oregon Legislature Races to Deadline: Gas Tax Vote Moved, Data Center Tax Breaks Frozen, Budget Cuts Loom

Oregon lawmakers are sprinting toward the finish line of their 2026 legislative session, which must conclude by March 8th, with major decisions looming on transportation, data centers, and the state budget. 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]. Thank you for tuning in. Be sure to subscribe for more Oregon news updates. This has been a Quiet Please production. For more, check out QuietPlease.ai. Some great Deals https://amzn.to/49SJ3Qs For more check out http://www.quietplease.ai