New sales tax increases used vehicle tax to 2.25% in major policy shift

A significant tax increase on used vehicles was a hot topic during the Joint Committee on Transportation Reinvestment meeting held on June 27, 2025. The committee discussed a new sales tax rate of 2.25% for all vehicles, including used ones, which marks a notable rise from the previous 1% tax on used vehicles priced over $10,000.

This change has raised concerns among committee members and the public, as it is seen as a step backward for consumers. The increase in tax burden could impact affordability for many Oregonians looking to purchase used vehicles.

While the committee did not delve into further details about the implications of this tax hike, it is clear that this decision could have significant repercussions for the state's transportation landscape and the financial well-being of its residents. As discussions continue, stakeholders will be watching closely to see how this tax change will affect vehicle sales and overall economic conditions in Oregon.