Local & State
Ohio pairs temporary gas-tax cut with $725 million road-fund backfill
PN Team • 4 weeks ago
Ohio has cut its state gasoline and diesel taxes to a nominal amount for 90 days under House Bill 519, running from Oct. 4 through Jan. 2. The normal rates—38.5 cents per gallon for gasoline and 47 cents for diesel—will return afterward unless lawmakers act again. Other fuels, such as compressed natural gas, are not included in the holiday.
To offset the lost revenue, the legislation appropriates $725 million from Ohio's General Revenue Fund, plus $250,000 for the Department of Taxation to administer the change. State officials say this is meant to "fully offset" the reduction and preserve funding for road and bridge maintenance normally paid for through motor-fuel taxes, which also flow to counties, municipalities and townships. Republican lawmakers described the funding as drawn from surplus General Revenue Fund money, not the state's rainy-day fund. Retailers must pass the tax savings to consumers, though pump prices can still vary due to crude oil and wholesale cost changes, as local price checks have shown.
Sources:
Sentiment
- Ohio Ohio is portrayed as taking a proactive, balanced fiscal step to cut gas taxes while backfilling road funding, reflecting positively on the state's governance.
- Republican Party (United States) Republican lawmakers are credited with crafting the tax cut and funding offset in a way that preserves road maintenance, portraying them as fiscally responsible.