La Grande moves forward with $0.05 cent gas-tax proposal
By Garrett Christensen on Tuesday, July 7th, 2026 in More Top Stories Northeastern Oregon News
LA GRANDE – The city of La Grande is officially moving forward with a proposed gas tax to be voted on by residents this November. During a regular meeting on Wednesday, July 1st, the La Grande City Council officially voted to refer a $0.05 cent gas tax to the November General Election Ballot for a public vote.
For those unfamiliar with the situation, in brief, the City of La Grande has been developing various ideas throughout 2026 to address the local street maintenance deficit, in particular to compensate for the depletion of temporary ARPA funding. As written by the city in last week’s council agenda packet (item 7.b):
“Based upon staff analysis and discussions with the Public Works Department, the City faces an estimated annual transportation funding shortfall of more than $500,000 to keep up with the year to year maintenance of our transportation system. Without additional funding, deferred maintenance will continue to accumulate, resulting in higher future repair and reconstruction costs.”
The most serious of these funding solutions is a local city gas tax, which will now go before the public vote. The tax proposal that was specifically referred was the third of five total options drafted by the city, and includes the following criteria (as again listed in the council agenda):
Option 3 – Five-Cent Local Fuel Tax with Five-Year Sunset (Staff Recommendation)
- Estimated annual revenue: approximately $830,000
- Expires after five years unless renewed by voters
- Automatic sunset within 12 months if a qualifying State transportation funding package is adopted
As written above, the option that will appear on the November ballot includes a pre-planned sunset date of five years (requiring the public to vote on an extension), and an automatic sunset if the (as of writing, still legislatively stalled) Oregon Transportation Funding Package were to be fully implemented. A further stipulation also noted that all revenue would be restricted primarily to local street and road purposes, with a potential allowance of up to 10% being used for sidewalk programs and pedestrian infrastructure once local road maintenance is improved.
The other four options considered during the meeting were a $0.03 cent tax in perpetuity, a $0.03 cent tax with a ten-year sunset date, a $0.05 cent tax with a ten-year sunset date, and no new tax. The estimated annual revenue for the $0.03 cent proposals was $500,000, according to the council agenda.
During the recent meeting, there was some deliberation over the $0.05 cent five-year proposal and the $0.03 cent in perpetuity proposal. Council members Corrine Dutto and David Glabe both expressed some preference for the $0.03 cent proposal, Dutto preferred the lower cost proposal over cost concerns to low-income residents, and Glabe out of concern that, should the $0.05 cent tax sunset without renewal or alternative revenue source, the city could end up in a similar situation to now with the expending of ARPA funds.
City Manager John O’Brien expressed concern that a perpetual tax (even a smaller one) would dissuade public support, and hopes that the city can use the initial 5-year period (assuming a passing vote) to prove to the public that the tax money will be put to good use. Council member Mary Ann Miesner also noted that community members she had spoken with wanted to know what the tax will realistically cost them in the long term.
According to a data graphic recently shared by O’Brien, the city estimates that the $0.05 cent tax could add an additional $1.50 per 30 gallons filled at the pump. For annual costs, assuming residents drive 15,000 miles per year and fill up exclusively in La Grande, the city estimates an additional cost of upwards of $37.50 per year for vehicles at 20-MPG and using 750 gallons annually, to as low as $18.75 per year for vehicles at 40-MPG using 375 gallons annually.
Ultimately, the council voted to move forward with the $0.05 cent and 5-year sunset proposal. The final decision on the gas-tax proposal will go before the public on the ballot for the November General Election.
