Ohio Looking at Options to Replace Gas Tax

Calling the gas tax an unsustainable way to fund transportation infrastructure, the Ohio Department of Transportation is studying its options.

Using a $4 million federal grant, Ohio developed a website to seek public opinion on potential funding options. Those results will eventually be forwarded to the General Assembly later this year, according to a promotional video produced by ODOT.

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Ohio Governor DeWine Opposes Biden’s Call to Suspend Gas Taxes

While President Joe Biden this week began urging Congress to suspend the national gas tax for three months and asking states to do the same with their gas levies, Ohio Gov. Mike DeWine (R) came out against the idea. 

The federal government charges gasoline buyers $0.18 per gallon and diesel motorists $0.24 per gallon. The Buckeye State meanwhile imposes a $0.385-per-gallon tax on gasoline as well as a $0.47-per-gallon tax on diesel and other fuel types. Both levels of government use the revenues from these sources to fund transportation projects. Biden maintains that dollars flowing to the U.S. Treasury are sufficient to prevent compromising federal highway repairs in the event of a three-month tax holiday.

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Gas Tax Increase, Budget Cuts Give Ohio $2 Billion for Road Projects

Ohio Department of Transportation worker

Despite traffic on state highways, roads and bridges decreasing significantly in 2020, the Ohio Department of Transportation expects to spend nearly $2 billion in the next year on nearly 1,000 projects.

Traffic volume fell by 15.5% during the past year as the COVID-19 pandemic limited road travel, ODOT said. More people worked from home. Stay-at-home health orders, capacity limits, business closures and statewide curfews also reigned in optional travel.

Despite the limited driving, which also leads to less fuel consumption and less taxpayer money available, ODOT pointed to a 2019 gas tax increase, along with budget cuts, for staving off what could have billon a $3 billion swing in taxpayer money for the department.

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DeWine Says Driving ‘While Eating’ Should Be as ‘Culturally Unacceptable’ as Drunk Driving

  Ohio Governor Mike DeWine announced the formation of a permanent Distracted Driving Advisory Council Thursday. The council is aimed at changing the atmosphere surrounding safe driving in acknowledgment of safe driving month. “Driving while texting, or eating, or dialing a phone should be as culturally unacceptable as drunk driving is today,” said Governor DeWine; adding: When drivers choose to do anything that distracts them from paying full attention to the road, they choose to risk their own lives, the lives of their passengers, and the lives of everyone else around them. Prior to the announcement, the task force released a 22-page pamphlet to inform drivers about the risks they are taking while driving distracted. The pamphlet contained detailed statistics surrounding the causes of incidents. The study was conducted by the Ohio Department of transportation. “Now is the time to create a long-term, comprehensive plan that educates drivers, promotes changes in behavior, and strengthens Ohio’s distracted driving laws,” said DeWine. According to the study, the state recorded around 14,000 distracted driving crashes in 2017. Of those incidents 58 people were killed, 493 seriously injured and over 7,000 people were injured statewide. The study concluded the majority of crashes happen during evening…

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DeWine Sends ODOT Director to Senate to Lobby for 18-Cent Gas Tax

COLUMBUS, Ohio – The Ohio Senate Transportation, Commerce, and Workforce Committee began hearing testimonies Monday on Gov. Mike DeWine’s demand for an 18-cent gas-tax increase. The chairman of that committee, Sen. Rob McColley (R-01) (pictured, left), however, made it clear that he and his fellow Senate Republicans oppose the 18-cent figure, and even suggested an income-tax cut to offset a gas-tax increase. But Ohio Department of Transportation (ODOT) Director Jack Marchbanks (pictured, right) said Monday during his testimony that anything less than 18-cents wouldn’t cut it, and claimed that the smaller gas-tax increase of 10.7-cents passed in the House’s version of the transportation budget last week “falls far short of Ohio’s real need.” “As you may recall, due to flat revenues, highway construction inflation, and mounting debt payments, ODOT is in jeopardy of being unable to fulfill its mission to maintain the state’s most valuable physical asset: our state highway system. The credit cards are maxed out and the long-term health of Ohio’s transportation system is now at stake,” Marchbanks said. He argued that an 18-cent increase is necessary because the “state has avoided making the difficult decision to find a long-term solution to our transportation revenue shortfall for more…

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Ohio House Finance Committee Makes Its Own Road Funding Proposal of 10.7 Cent Gas Tax Increase Phased in Over Three Years, No Indexing

COLUMBUS, Ohio – After more than an hour and a half delay waiting for the substitute bill to be prepared, House Finance Chairman Scott Oelslager (R-District 48) called the meeting to order and presented the Fiscal Year 2020-2021 proposed Ohio Department of Transportation (ODOT) Budget under HB 62. The Transportation Budget, as presented by Oelslager (pictured above), would include an increase of 10.7 cents per gallon on gasoline and 20 cents per gallon on diesel. There would be a three-year phase-in on both increases as follows: Gasoline 5 cents in October 1, 2019 3 cents on October 1, 2020 2.7 cent on October 1, 2021 Diesel 10 cents on October 1, 2019 6 cents on October 1, 2020 4 cents on October 1, 2021 And, it was noted, “This increase will not be indexed,” with the emphasis included in the hard-copy document distributed to the Finance Committee members. The document also reported that the increases in the state motor fuel taxes, once fully phased in, will yield approximately $872 million.  The current split of 60/40 between ODOT and local governments will be maintained. The proposal includes new registration fees for electric and hybrid vehicles, at $200 and $100, respectively. Compressed…

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