New DMV Fees

The Oregon Legislature passed House Bill 3991 in September 2025 to provide transportation funding for ODOT, cities, counties and transit districts around the state. Transportation funding maintains the quality, safety, and reliability of Oregon's roads, bridges and other parts of our transportation system.

Petitioners turned in more than the required number of signatures to potentially refer portions of the funding bill to a statewide vote in November 2026. The Secretary of State Elections Division determined the petition contained sufficient signatures to qualify for the ballot. As a result, several House Bill 3991 tax and fee increases are suspended until the results of the election.

The referendum only called for certain portions of the bill to go to voters. Two registration fee increases from Section 46 of the bill were not included in the petition. Effective Dec. 31, 2025, the annual registration fee for all electric and 40 MPG or higher passenger vehicles increased by $30 ($60 for a two-year registration).

ODOT faces a historic operations and maintenance funding crisis caused by stagnating gas tax revenues as Oregonians drive more efficient vehicles, rising costs and legal limits on how transportation funds can be used.

Title and registration fees combine with the state’s gas tax and fees on freight haulers to finance the State Highway Fund, which then distributes money to the state, counties and cities to maintain and improve Oregon’s roads and bridges. Vehicle fees help pay for snow and ice removal, removing rockfall and landslide debris, clearing lanes after traffic incidents, and other critical maintenance work in counties and cities across the state. These fees also fund DMV staffing positions previously frozen or held vacant, strengthening frontline services and enhancing the quality of our customer data.

ODOT is working closely with legislators and the Governor’s Office to evaluate next steps as a referendum effort moves forward and is preparing for potential impacts. If the funding is repealed, the specific effects on ODOT operations and service levels are not yet known. Over the past six years, ODOT has implemented voluntary budget reductions, consolidated operations, reduced its fleet, and held vacancies open to stretch available dollars. ODOT will continue operating under an austerity budget, limiting purchases and out-of-state travel.

ODOT DMV New Fees Handout