Ohio lawmakers are poised to vote Wednesday on a temporary suspension of the state's gas tax at the request of two gubernatorial candidates locked in a tight race focused on affordability.
Now, lawmakers are expected to spend $726 million in taxpayer dollars to ease the pain at the gas pump. The proposed legislation would suspend Ohio's 38.5 cents-per-gallon gas tax and 47 cents-per-gallon diesel tax to virtually zero for 90 days − likely saving the average driver about $80 around the elections and the holidays.
The last-minute legislation was introduced days after Democratic candidate Amy Acton pitched a gas tax holiday and Republican contender Vivek Ramaswamy announced his own plan hours later. Ramaswamy came with more details and support from
the state's top lawmakers, both Republicans.
"This is going to have an impact on the spending power of Ohio citizens," said Sen. Jane Timken, R-Jackson Township. "They are feeling the pinch."
According to AAA, Ohio's average gas price was $4.28 per gallon on Sept. 29, while diesel averaged $6.70. The Iran War, which led to disruptions at a key oil choke point, and other conflicts abroad have led to skyrocketing gas and diesel prices.
Ohio lawmakers' changes will not impact the 18.4 cents per gallon that the federal government charges on gas, and the 24.4 cents per gallon charged on diesel. Ohio would continue to charge one-hundredth of one cent per gallon for accounting purposes and to avoid issues with neighboring states.
Gas stations that don't pass savings onto customers could face penalties from the Ohio Department of Taxation and the Ohio Attorney General. Tony Ehler with the Ohio Council of Retail Merchants warned there's no way to measure that, which could lead to witch hunts against gas stations with higher prices.
He, instead, recommended the free market as a remedy for any price gouging because gas stations with inflated prices won't get any customers. "Competition, free enterprise will make this work," he said.
Why cut gas taxes now?
Ramaswamy says high diesel prices, not his Democratic opponent, inspired him to take action. Acton says Ramaswamy is simply copying her idea.
Ohio lawmakers weren't scheduled to return to Columbus until after the Nov. 3 elections. Now, they'll vote on a bill with political implications a week before early voting begins. For the gas tax suspension to take effect immediately, it must pass with support from two-thirds of lawmakers in each chamber. In the Ohio House, Republicans need Democratic votes to reach that threshold.
Democrats are wary of how Ohio will pay for the gas tax cut without hurting state and local construction projects. Top House Democrat Dani Isaacsohn, of Cincinnati, said he'd rather use money from unclaimed funds currently allotted to a new, domed Cleveland Browns stadium to the tune of $600 million.
Sen. Bill DeMora, D-Columbus, said he'll vote against the bill, which he called a gimmick meant to prop up Ramaswamy, a candidate DeMora described as a deeply unpopular "billionaire bro" who flies around the state in a private jet. "I think the voters of Ohio can see through this prop up of their governor candidate who is unlikeable," he said.
DeMora said Acton was also wrong for calling for a gas tax holiday, which is a "bad idea." "I'm not a sycophant. My governor's candidate was wrong on this issue, and I told her she's wrong," he said.
Democrats also want to vote on a resolution calling on President Donald Trump to end the war in Iran, which has led to higher gas prices as disruptions continue in the Strait of Hormuz, an important trade choke point.
Ramaswamy initially pitched paying for part of the tax break with reserves from the Ohio Department of Transportation or Ohio's rainy day reserves. But the $1.6 billion in the highway operating fund was already spoken for, and Gov. Mike DeWine was adamant about not tapping into those funds.
Republican lawmakers were also wary of spending any of the money in Ohio's rainy-day fund, which has more than $4 billion in it.
Why not tackle data centers, property taxes?
While in Columbus on Sept. 30, Ohio lawmakers aren't scheduled to vote on other issues hitting voters' pocketbooks, from property tax relief to data center moratoriums. They won't debate the future of Flock cameras or whether child marriage should be illegal.
Ramaswamy said a gas tax suspension was an easier lift than those more-complex issues.
"This one is simple," Ramaswamy said at the Little Brown Jug harness race in Delaware County. "So, the urgency, the fact that we can, the fact that it's relatively straightforward and, I believe, uncontroversial, allows us to get that done now was a running start to everything else that I'm going to put in motion starting in January."
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 to vote on suspending gas tax for 90 days
