Ohio lawmakers could vote on eliminating the state gas tax as early as next week.
Republican gubernatorial candidate Vivek Ramaswamy is calling on state lawmakers to eliminate the state's tax on gas, diesel and other fuels for 90 days. The change will require support from two-thirds of lawmakers in each chamber for it to take effect immediately.
If approved, Ohio would halt charging 38.5 cents per gallon on gas and 47 cents per gallon on diesel and other fuel for 90 days. Drivers would continue to pay an 18.4-cent federal gas tax.
The main reason gas prices have surged is the Iran War, which disrupted transportation through the Strait of Hormuz, a major
choke point for oil trade. Diesel prices have spiked because of wars in Ukraine and the Middle East, which have damaged oil refineries and reduced supply, according to the International Energy Agency.
The result: Ohioans are feeling the pain at the pump. The average price for regular gas in Ohio was $4.48 per gallon on Sept. 22, slightly higher than the national average, according to AAA.Ohio's prices are up from $4.14 per gallon a week ago, $4.06 per gallon a month ago and $3.02 at this time last year.
Ramaswamy estimated the change would save the average Ohio driver $165 over 90 days.
Global diesel prices are also hitting record highs, Reuters reported, and the price per gallon in Ohio is approaching $7. The cost of diesel is passed along to higher prices overall.
Why now?
In May, several GOP lawmakers initially pitched reducing the gas tax, but that bill didn't move before a summer break.
Then, on Sept. 21, Democratic gubernatorial candidate Dr. Amy Acton called for a gas tax holiday to relieve some of the pain at the pump. She offered few details, such as how long the holiday would last and how she would pay for it.
Hours later, Ramaswamy announced he wanted to suspend Ohio's gas tax for 90 days, calling on lawmakers to make the change immediately − even though they weren't scheduled to vote on new legislation until after the Nov. 3 election.
“The recent spike in diesel prices said we had to go now. We can’t wait for the election," Ramaswamy said during a Sept. 23 news conference at the Ohio Chamber of Commerce. "Diesel was the urgency."
Ohio's gas tax pays for state and local road construction and repairs, the Ohio State Highway Patrol's work and other safety programs. Ramaswamy wants to offset the $640 million to $700 million in lost tax revenue with money from the Ohio Department of Transportation, taxpayer dollars in the general revenue fund and, if needed, the rainy-day fund reserves.
Republicans have generally opposed tapping into the rainy day fund for any reason after Democratic Gov. Ted Strickland siphoned it down to 89 cents during the global recession.
What will happen?
Ohio House Speaker Matt Huffman, R-Lima, and Senate President Rob McColley, R-Napoleon, plan to hold a vote on the gas tax suspension on Sept. 30. McColley is Ramaswamy's running mate.
For the change to take effect immediately, two-thirds of lawmakers in both chambers would have to approve it. In the House, that would require Democratic support.
"I think Democrats who vote against this bill are doing it at their peril," Huffman said.
Both Ramaswamy and Acton have called for a gas tax holiday, but it's not yet clear whether Democrats will back a plan from the GOP gubernatorial nominee. Earlier this year, Democratic lawmakers opposed another Ramaswamy idea:a constitutional amendment to require photo ID to vote.
House Minority Leader Dani Isaacsohn, D-Cincinnati, said in a statement that lawmakers should pay for the gas tax cut with money from unclaimed funds currently earmarked for a domed Cleveland Browns stadium. A lawsuit is challenging whether lawmakers can legally appropriate that money.
When they return to Columbus, lawmakers aren't planning to tackle other issues hitting Ohioans' pocketbooks, such as property taxes or data centers. Acton called on lawmakers to pass a conditional moratorium on data centers while they are in Columbus.
“Ohioans have been clear; we need to lower costs, which is why I am calling on our Statehouse to pass a conditional moratorium on data centers when they return to session next week,” Acton said.
Ramaswamy says he has plans to address those if elected governor.
"Having addressed all the other levers we can to bring down costs in Ohio, we felt like it was our job to be complete and make sure that we provided gas tax and fuel tax relief, especially when it is fiscally possible," Ramaswamy said at the Farm Science Review in London on Sept. 22.
Will Gov. DeWine sign a gas tax suspension?
Gov. Mike DeWine hasn't said whether he would sign legislation to suspend gas taxes for three months. He previously expressed concern about what pausing gas tax collection would mean for road projects and safety.
Ramaswamy and McColley said they've spoken with DeWine and the current governor has an open mind about the idea. Huffman said support for this change is a no brainer.
“I’m not sure why anybody would even think that this is a hard vote or that Gov. DeWine would reject it," Huffman said.
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 lawmakers could vote on gas tax suspension next week
