Oregon lawmakers consider 4% tax on new tires sold to drivers

Oregon lawmakers are considering a bill that would impose a 4% tax on the sale of new car tires.

If passed, House Bill 3362 would impose a tax on each new or refurbished tire sold in Oregon.

Supporters say the tax could generate up to $20 million a year.

The money would go to the Oregon Department of Transportation to fund public transit by rail, reducing tire pollution across the state, and to build wildlife crossings.

“There is a growing problem with pollutants that are released off of our tires. All of us. And it is a chemical known as 6PPD. That particular chemical breaks down not from tires that are laying around in a parking lot somewhere or in a dump. This comes off our vehicles as we’re using them,” said Sen. Chris Gorsek at a Joint Committee on Transportation meeting Tuesday night. "It gets into streams; it harms salmon and other aquatic creatures in our ecosystem.”

If passed, the bill would fund the removal of the pollutant. Wildlife advocates are pleased with this.

“I’m here in support of HB 3362. It’s a bill that would provide ODOT the funding to make our roadways safer for drivers and wildlife, and mitigate transportation impacts, our water quality and fish mortality," said Colin Reynolds with Defenders of Wildlife.

On the other hand, a speaker with the U.S. Tire Manufacturers Association voiced concerns about the impact of the tax.

“House Bill 3362 is a regressive tax that would disproportionately impact low- or middle-income earners. We aren’t talking about a few bucks here. It’s a 4% tax which would increase the cost of a new set of tires, four new tires, for many Oregon motorists by 40 to 70 dollars," said Sean Moore, with the U.S. Tire Manufacturers Association.

Hundreds of people submitted written testimony.

https://katu.com/news/local/oregon-lawmakers-consider-4-tax-on-new-tires-sold-to-drivers-tire-fund-odot-transit-rail-public-pollution-wildfire-crossings-department-house-bill-hb-3362

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Author: KATU News
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News post in at: March 6, 2025, 3:00 am.

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