Motorists might catch a break: Ohio considers gas tax cut, lower hybrid registration fees – The Columbus Dispatch
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Ohioans may pay less for gas and no longer be required to pay extra fees for hybrid and electric vehicles if a proposed bill becomes law.
Republican state Sen. Steve Huffman of Tipp City is sponsoring legislation to reduce the state motor fuel tax to 28-cents a gallon, down from 47-cents a gallon for diesel fuel and 38.5-cents for gasoline.
Senate Bill 277 would also eliminate special registration fees paid by owners of hybrid and electric vehicles for the next five years. The special fee is $100 for hybrids and $200 for electric vehicles. The 123,000 hybrids and 31,000 electric vehicle owners still use the roads but pay less or no gas taxes.
The bill faces an uphill fight. Gov. Mike DeWine, who pushed through higher gas taxes in 2019, has said rolling back the tax and fees would leave Ohio short of what’s needed for road projects.
State gas taxes, along with federal fuel taxes, are used to pay for road and bridge maintenance, repair and construction.
More: Ohio’s gas tax hike was Gov. DeWine’s first big legislative test. Did he pass it?
According to the American Petroleum Institute, Ohio ranks 14th in the country for highest regular gasoline tax rates, and ninth for diesel.
According to AAA, the average price of gas in Ohio has consistently risen in the last year, climbing more than $1 for diesel and nearly 70 cents for regular gas.
Huffman said this bill aims to help Ohioans keep some of their money since Ohio is set to receive $11.3 billion from the federal government.
“A gas tax is a tax on the poor,” Huffman said, “It’s tough to spend an extra 10 dollars a week on gas if you have a very limited budget.”
ODOT: Gas tax cut would cost $4B in revenue
If the gas tax cut goes through, Ohio would lose $4 billion over the next five years, according to the state Department of Transportation. The federal infrastructure fund would offset some but not all of those losses.
Related: ‘The weeks ahead could be rather ugly’: Gas prices are continuing to climb in Ohio
Also, Ohio’s gas tax revenues are falling below projections because people are driving fewer miles during the pandemic. In 2020 and 2021 combined, gas tax revenues fell $464 million below expectations, according to state officials.
The DeWine administration is reviewing Huffman’s bill, which had its first hearing last week.
Mary Jane Sanese is a fellow in Ohio University’s E.W. Scripps School of Journalism Statehouse News Bureau program.
