Ore. Senate Panel OKs Gas Tax

SALEM, Ore. (AP) — A bill to raise the state's gasoline tax by 5 cents a gallon was approved Tuesday by an Oregon Senate committee, but the panel's chairwoman said she doubts the tax hike will pass in the full Senate.

The House earlier passed a version containing a 6-cent increase, but now many Senate Republicans are getting cold feet about voting even for a 5-cent boost, Sen. Marylin Shannon said.

The package, which now goes to the Senate for debate, also would raise Oregon's vehicle registration fee by $10.

The AAA of Oregon also has threatened to refer the 5-cent-a-gallon gasoline tax hike to the voters because the package also eliminates Oregon's weight-mile tax on truckers.

Shannon said she'd be just as happy to see the Senate pass a bill to use part of the current gas tax to generate $600 million for roads through bonding.

"I couldn't care if it fails, because we have another plan," the Brooks Republican told reporters after her committee voted out the gas tax increase.

If the gas tax plan were to die in the Senate, this would be the fourth consecutive legislative session in which lawmakers have refused to raise the tax to expand and repair Oregon's road system.

Despite Shannon's comments, however, the business lobbying group that has been pushing for the gas tax hike said it still believes the Legislature will approve a gas tax package this time around.

"People recognize that we have a serious problem with the aging of our existing system, and they can see traffic congestion that's related to growth," said Betsy Earls of Associated Oregon Industries.