Ohio lawmakers could spend $726 million to eliminate gas taxes for 90 days amid a push from Ohio's gubernatorial candidates to ease prices at the pump.
Newly proposed legislation would reduce Ohio's tax on gas and diesel to virtually zero for 90 days. Ohio drivers currently pay 38.5 cents per gallon on gas and 47 cents per gallon on diesel and other fuels, the 14th highest rate in the country, according to the Tax Foundation.
Under the change, drivers would pay one-hundredth of one cent per gallon for accounting purposes and to avoid issues for gas stations bordering neighboring states, said Sen. Jane Timken, R-Canton. Drivers would continue to pay an 18.4-cent federal gas tax, which Ohio lawmakers have no power to pause.
Lawmakers want to pay
for this gas tax relief with $726 million from the taxpayer-funded general revenue fund − not Ohio Department of Transportation's highway fund or rainy-day reserves. GOP gubernatorial candidate Vivek Ramaswamy had pitched all three revenue sources as ways to pay for the gas tax cut.
But Gov. Mike DeWine had opposed using money earmarked for road construction and repairs to pay for Ohioans' gas price relief. He told reporters on Sept. 25 that it would be a "very, very bad idea."
Timken said Ohio can afford this gas tax suspension because of "conservative policies" that built up Ohio's reserves. She introduced the changes with Sen. Michele Reynolds, R-Canal Winchester, in Senate Bill 475. A companion bill, House Bill 1019, is sponsored by Reps. Jim Thomas, R-Plain Township, and Andrea White, R-Kettering.
About $1 million of the $726 million would pay gas stations $125 each for software changes. Upon request, gas station operators would have to provide customers with an itemized receipt of the cost of gas, taxes and the total sum of their gas purchase.
Democratic gubernatorial candidate Amy Acton pitched a gas tax holiday on Sept. 21. Several hours later, Ramaswamy announced a plan to halt state taxes on gas for 90 days, calling on GOP legislative leaders − including his running mate − to make the change immediately.
The average cost of gas was $4.32 per gallon on Sept. 28, down from $4.52 the week before. Diesel prices were $6.73 per gallon on average, according to AAA.
Meanwhile, Rep. Allison Russo, D-Upper Arlington, introduced a resolution calling on President Donald Trump to end the Iran War, which has led to gas price spikes because of limited access to the Strait of Hormuz.
“Ohioans are paying more at the gas pump because President Trump has embroiled us in a reckless war with Iran that has unnecessarily killed American soldiers and created chaos and shortages in U.S. fuel supplies,” said Russo, who is running for secretary of state, in a statement.
The Ohio House of Representatives and Senate could vote to suspend the gas tax and consider the Iran War resolution on Sept. 30. The gas tax holiday bill needs support from two-thirds of lawmakers to take effect immediately. In the House, that means Democrats will need to sign off on the change.
Democrats have suggested paying for the relief with $600 million in unclaimed funds earmarked for a domed Cleveland Browns stadium. A lawsuit disputes whether Ohio lawmakers can use that money for a sports stadium.
State government reporter Jessie Balmert can be reached at jbalmert@usatodayco.com or @jbalmert on X.
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This article originally appeared on The Columbus Dispatch: Ohio gas tax holiday could cost state $726M
