NEWPORT — Citing increased traffic and cost, Newport’s city council will ask voters in May to approve a higher, year-round gas tax.
The measure would increase the gas tax to 5 cents a gallon year round. Currently, drivers pay 3 cents a gallon at the pump in the summer and fall, and 1 cent a gallon in the winter and spring.
During a Tuesday City Council meeting, Mayor Jan Kaplan said the city is struggling to pay for street maintenance, and new projects.
“It’s not because our public works folks aren’t doing their job, it’s because we haven’t done our job of funding it,” he said. “The city simply doesn’t have the funds to keep up with the roadwork, let alone the work that needs to be done to resurface.”
City Manager Spencer Nebel said maintenance is more expensive and more people are using the roads now, especially during the summer.
“Unlike a rate, which would increase with prices, that 1 and 3 cents has stayed 1 and 3 cents for 25 years now,” he said. “It’s just not enough money to do what needs to be done to the roads.”
Voters will weigh in during the May 21 election. If it passes, the city projects the tax would bring in a little more than $500,000 a year.
Newport city leaders asked voters to increase the gas tax for street repairs in 2021, but the measure failed.
Newport is one of approximately 32 cities that have a fuel tax. It’s one of just two that collects a higher rate during the tourism season. The other is Reedsport, according to the Oregon Department of Transportation.
If Newport raises its fuel tax to 5 cents a gallon, it would be tied for third with Eugene for highest local fuel taxes in the state. Portland has the highest local gas tax at 10 cents a gallon followed by Coburg with 6 cents per gallon.
— Rebecca Hansen-White/KLCC News
So one of the reasons justifying it is more people on the road during the summer (ie, tourists), so the largest increase will be for year long residents (larger increase in the winter)?
Cheryl B is correct. The residents will be paying for the road damage caused by tourists. And the lowest wage service workers will be hardest hit because many drive in to Newport from the outlying towns due to the lack of affordable housing in Newport. This is a regressive tax, meaning it will have the hardest impact on the people least able to afford it. There are alternatives. The city of Newport’s income from transient room tax has been increasing by millions of dollars in the past few years. They can use some of that money on “tourist-related” street repairs instead of pouring it into enticing even more tourists to come to this area.
No.