Friday, Ohio Department of Transportation Director Jack Marchbanks formally introduced the proposed 2020-21 Biennial Budget. House Bill 62 (HB 62), the budget’s formal designation, includes an 18-cent gas tax increase. While lower than some reports have suggested, the proposed tax will give Ohio one of the highest gas tax rates in the country. In addition, it contains a provision that could raise gas taxes even higher in the coming years. The 18 cent tax would go into effect immediately upon passage. When measured against other states, this is an exceptionally aggressive approach. When Nebraska voted to raise its takes, it did so in increments of 1.6 cents per year. A more incremental approach could ensure Ohioans don’t face “sticker shock” at the pump. The bill would also tie the gas tax rate to the Consumer Price Index (CPI). At the start of every fiscal year, the tax will be reexamined and if the CPI has increased, the tax will increase with it. While it would ensure that road repair is adequately funded, there is a significant drawback. As written, the law does not stipulate that the gas tax would decrease, should the CPI decrease. if the Ohio economy faces a sudden hardship or enters a recession, Ohioans would…
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