Relating to a tax on sales of tires; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.
HB 3362 creates a new 4% excise tax on retail sales of new and newly refurbished tires sold for use on motor vehicles on public highways in Oregon. The tax is collected at the point of sale by sellers, must be separately disclosed on receipts or invoices, and applies beginning January 1, 2026. The bill also sets out refund procedures for overpayments, filing and remittance requirements, recordkeeping rules, audit and subpoena authority, appeal rights, and enforcement provisions administered by the Department of Revenue.
The measure directs tire-tax revenue, after administrative costs and refunds, into two new dedicated funds. Seventy-five percent goes to the Tire Pollution and Rail Transit Fund, which supports rail and other public transportation projects and a tire pollution prevention and mitigation program. The remaining 25% goes to the Wildlife-Vehicle Collision Reduction Fund, which supports wildlife crossing and habitat connectivity projects and other efforts to reduce wildlife-vehicle collisions. The bill also requires the Department of Transportation, in consultation with environmental and fish and wildlife agencies, to establish a tire pollution prevention and mitigation program focused on stormwater runoff and impacts on aquatic species.
HB 3362 would add a new state excise tax and create new statutory revenue streams and programs tied to tire sales. It would amend Oregon tax administration by placing tire-tax collection, reporting, enforcement, confidentiality, and appeal procedures under the Department of Revenue and existing tax law frameworks, while also creating two special funds in the State Treasury with continuous appropriations to the Department of Transportation. The bill would affect tire retailers, purchasers of taxable tires, and state agencies responsible for tax administration, transportation, environmental mitigation, and wildlife protection.
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from legislative debate. Based on the bill text, the measure appears framed as a revenue-raising environmental and transportation funding proposal, with a policy rationale centered on tire pollution mitigation, rail transit support, and wildlife collision reduction. The absence of recorded discussion makes the overall sentiment difficult to gauge beyond the bill’s stated objectives.
The main likely points of contention are the new 4% tire tax itself, the cost passed on to consumers, and whether tire sales should be used to fund rail transit and wildlife-related infrastructure. Another possible issue is the breadth of the tax administration and enforcement provisions, including seller liability, joint and several liability for corporate officers or employees, and the Department of Revenue’s subpoena and collection authority. Supporters would likely emphasize environmental mitigation and dedicated transportation funding, while opponents may focus on tax burden, administrative complexity, and the connection between tire sales and the funded programs.