Oregon drivers buy millions of tires every year. A controversial bill could create a tax on each one
The tire business has been good to Zach Hastings. He opened Hastings Tire & Offroad, a small Redmond tire supply shop, in 2018.Demand for new tires has remained relatively steady, Hastings said, even as rising manufacturing costs and trade policies have pushed prices up. And in Oregon, where residents get rid of roughly four million tires a year, replacements are a constant need, according to the state Department of Environmental Quality.But Hastings worries that he might soon have to raise his prices as lawmakers in Salem spar over a bill that would create a 4% tax on all Oregon tire sales. “A small business can’t necessarily absorb extra costs like that, and instead that just turns around and gets placed onto the purchaser,” Hastings said. “Realistically, that means that prices on tires are just going to go up 4% in the state of Oregon.”Democrats supporting the bill say the benefits outweigh the drawbacks. A quarter of the revenue would fund efforts to build highway crossings for wildlife to minimize car crashes involving animals. The remaining revenue would support programs to expand rail and public transit service in the state as well as efforts to reduce water pollution from illegally discarded tires. Recent research has shown that tires contain toxic particles that can wear off and enter streams and other bodies of water, which can harm fish and other animals that access those waters.“We have worked to keep the amount of the tax low,” said Sen. Chris Gorsek, a Democrat from Gresham and chief sponsor of the bill. “And on the other hand, we’re all contributing to an environmental problem that is a new thing, but it is something that we need to take seriously.”The bill has incensed Republican lawmakers and business groups, who frequently fight any proposal to create or raise taxes. Republican caucus leaders have pushed their constituents to rally against the proposal, prompting more than 1,000 submissions of written testimony, nearly all opposed to the bill. An initial public hearing on the proposal is scheduled for Tuesday evening.“Tires are one of the most important safety features on any vehicle, and replacing them is already a financial burden for many Oregonians,” Erik Lukens, spokesperson for statewide business lobby Oregon Business and Industry, told The Oregonian/OregonLive. Lukens said the tax “would make tires even more expensive, encouraging vehicle owners to make older, worn tires last longer.”Republican critics, many of whom represent rural areas, also argue that the tax would unfairly hurt rural residents, many of whom drive longer distances than urban residents and often don’t have the option to take public transit.The tax proposal comes at a delicate time for lawmakers. Legislators are in the early stages of crafting a major transportation package this legislative session, and the state transportation agency has said it needs more than $1.7 billion of additional funding each year to better maintain Oregon’s roads and bridges.Sen. Bruce Starr, a Republican from Dundee who has been tapped by Democrats to oversee the accountability portion of the package, criticized the proposed tire tax for failing to help close that funding gap. He also claimed, in a newsletter sent Friday, that the bill would not deliver positive environmental benefits.Gorsek, who co-chairs the transportation committee and appointed Starr to that role, pushed back against those claims. Many of the dollars in Oregon’s massive transportation-specific fund can only be used for road maintenance or other specific programs, he said, leaving some important needs without necessary funding. The tire tax would help solve that, he said.“There will be people who don’t like the bill. I understand that,” Gorsek said. However, he said, “We are trying to think in a bigger way than only focusing on the highway side of things.”— Carlos Fuentes covers state politics and government. Reach him at 503-221-5386 or cfuentes@oregonian.com.Our journalism needs your support. Subscribe today to OregonLive.com.Latest local politics stories
An initial public hearing on the proposal is scheduled for Tuesday evening.
The tire business has been good to Zach Hastings. He opened Hastings Tire & Offroad, a small Redmond tire supply shop, in 2018.
Demand for new tires has remained relatively steady, Hastings said, even as rising manufacturing costs and trade policies have pushed prices up. And in Oregon, where residents get rid of roughly four million tires a year, replacements are a constant need, according to the state Department of Environmental Quality.
But Hastings worries that he might soon have to raise his prices as lawmakers in Salem spar over a bill that would create a 4% tax on all Oregon tire sales.
“A small business can’t necessarily absorb extra costs like that, and instead that just turns around and gets placed onto the purchaser,” Hastings said. “Realistically, that means that prices on tires are just going to go up 4% in the state of Oregon.”
Democrats supporting the bill say the benefits outweigh the drawbacks. A quarter of the revenue would fund efforts to build highway crossings for wildlife to minimize car crashes involving animals. The remaining revenue would support programs to expand rail and public transit service in the state as well as efforts to reduce water pollution from illegally discarded tires.
Recent research has shown that tires contain toxic particles that can wear off and enter streams and other bodies of water, which can harm fish and other animals that access those waters.
“We have worked to keep the amount of the tax low,” said Sen. Chris Gorsek, a Democrat from Gresham and chief sponsor of the bill. “And on the other hand, we’re all contributing to an environmental problem that is a new thing, but it is something that we need to take seriously.”
The bill has incensed Republican lawmakers and business groups, who frequently fight any proposal to create or raise taxes. Republican caucus leaders have pushed their constituents to rally against the proposal, prompting more than 1,000 submissions of written testimony, nearly all opposed to the bill. An initial public hearing on the proposal is scheduled for Tuesday evening.
“Tires are one of the most important safety features on any vehicle, and replacing them is already a financial burden for many Oregonians,” Erik Lukens, spokesperson for statewide business lobby Oregon Business and Industry, told The Oregonian/OregonLive. Lukens said the tax “would make tires even more expensive, encouraging vehicle owners to make older, worn tires last longer.”
Republican critics, many of whom represent rural areas, also argue that the tax would unfairly hurt rural residents, many of whom drive longer distances than urban residents and often don’t have the option to take public transit.
The tax proposal comes at a delicate time for lawmakers. Legislators are in the early stages of crafting a major transportation package this legislative session, and the state transportation agency has said it needs more than $1.7 billion of additional funding each year to better maintain Oregon’s roads and bridges.
Sen. Bruce Starr, a Republican from Dundee who has been tapped by Democrats to oversee the accountability portion of the package, criticized the proposed tire tax for failing to help close that funding gap. He also claimed, in a newsletter sent Friday, that the bill would not deliver positive environmental benefits.
Gorsek, who co-chairs the transportation committee and appointed Starr to that role, pushed back against those claims. Many of the dollars in Oregon’s massive transportation-specific fund can only be used for road maintenance or other specific programs, he said, leaving some important needs without necessary funding. The tire tax would help solve that, he said.
“There will be people who don’t like the bill. I understand that,” Gorsek said. However, he said, “We are trying to think in a bigger way than only focusing on the highway side of things.”
— Carlos Fuentes covers state politics and government. Reach him at 503-221-5386 or cfuentes@oregonian.com.
Our journalism needs your support. Subscribe today to OregonLive.com.