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The ruling is a blow to Republicans who have insisted the vote should be held in November.
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Attorneys appeared in court Tuesday for the first hearing in a case that could have big political impact.
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Republicans have vowed to file suit over the maneuver.
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The Secretary of State says legislators risk subduing public input if they wait longer to pass a controversial bill.
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Democrats were able to pass the bill, but House Republicans could use delay tactics.
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The idea emerged in an amendment posted Friday afternoon, but soon fell apart.
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Can Democrats repeal the tax before a vote? What happens then? No one knows for sure.
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The submission will likely ensure a gas tax increase approved by Oregon lawmakers this year doesn’t take effect.
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The initiative needed roughly 78,000 signatures by Dec. 30 to qualify for next year’s election. Backers say they have more than 150,000.
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Republicans say they’ll insist voters get a say on new taxes in the Oregon transportation bill.
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Democrats envision a quick Labor Day weekend get together. Republicans say they’re not on board.
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As lawmakers search for billions of dollars to maintain deteriorating roads, it’s one of many options under consideration.