The proposed “gas tax” by Gov. Mike DeWine in the State transportation budget would raise the state’s tax of fuel from the current 28-cents-per-gallon to 46 cents and generate $1.2 billion as part of the two-year, $7.4 billion transportation budget.
The reason behind the proposed increase is significant shortfall in the state’s road and bridge maintenance budget — something the Ohio Department of Transportation (ODOT) looks to quickly approach $1 billion by 2030 if unabated.
Last week the Ohio House responded to the governor’s proposal with a 71 to 27 vote to raise the tax on gas 10.7 cents with a two-year phase in period, making the tax on gas $0.387 per gallon. In addition, the House:
- Increased the tax for on-road diesel by 20 cents over a three-year phase in period, making the tax on on-road diesel $0.48 per gallon.
- Added a provision putting compressed natural gas to the list of taxable motor fuels.
- Added an electronic vehicle registration fee of $200 and a hybrid vehicle registration fee of $100.
- Stipulated that 55% of revenue generated will be distributed to the state and 45% will be to local governments.
- Combined, the revenue increases in the House will generate $872 million.
The transportation budget now heads to the Senate for consideration. It has to be signed by March 31.