Ohio plans vote on 90-day gas tax holiday that could cost up to $700 million

Ohio’s pump-price vote arrives

Ohio lawmakers plan a September 30 vote on a 90-day fuel-tax holiday as drivers face steep pump prices. The session interrupts a legislative recess that had been expected to last until after the November election.

The proposal matters because it could suspend state fuel taxes during holiday-season travel. It also forces lawmakers to settle a road-funding fight quickly.

The proposal pauses two fuel taxes

State Representatives Andrea White and Jim Thomas said their bill would pause Ohio’s motor-fuel tax for 90 days. The measure is intended to take effect in October if lawmakers use an emergency clause.

It covers gasoline and diesel, which carry different rates. Sponsors promise uninterrupted road funding, though replacement money remains the key Statehouse dispute.

Prices explain the sudden urgency

Ohio’s regular gasoline averaged $4.3589 a gallon on September 26, up from $2.9139 one year earlier. Diesel averaged $6.7578, compared with $3.6705 a year ago.

Those increases show why a temporary tax cut has broad appeal. AAA recorded Ohio’s all-time diesel average high of $6.8174 on September 22, only four days before this price snapshot.

Savings depend on every fill-up

Supporters estimate a two-driver household could save about $165 during the 90-day pause. The figure assumes that fuel sellers pass the suspended tax on to customers, and that families keep buying similar amounts.

At the current rate, removing 38.5 cents saves $5.78 on a 15-gallon gasoline fill-up. A household’s total will vary with mileage, efficiency, and prices.

Little-known fact: Federal gasoline and diesel taxes have remained at 18.4 cents and 24.4 cents per gallon since 1993. All but 0.1 cent goes to the Highway Trust Fund.

The revenue hole could hit $700 million

The 90-day break could reduce state fuel-tax collections by $640 million to $700 million, House Speaker Matt Huffman said. Ohio gas taxes have generated about $2.6 billion annually in recent years.

That means three months of relief could erase roughly one-quarter of a normal year’s fuel-tax revenue. The question is, who pays those bills instead?

Ohio law locks fuel money to roads

Ohio’s Constitution limits how vehicle and fuel-tax money may be spent. Since 1948, Article XII, Section 5a has directed it toward highway debt, road and bridge work, traffic-law enforcement, refunds, and related purposes.

A holiday stops new collections for 90 days, but it does not remove those transportation needs. Replacement plans must respect those limits.

Little-known fact: Ohio’s 2019 transportation budget also ended the state’s two-license-plate rule. Since July 2020, most Ohio vehicles have needed only a rear license plate.

ODOT’s cash is already committed

Backers proposed using ODOT balances first, then Ohio’s general fund and rainy-day reserve if necessary. Budget officials say the Highway Operating Fund’s cash balance is just under $1.6 billion.

That balance already supports about $5 billion in open orders for operations, maintenance, and construction. Officials say none is unplanned, which sharpens the central funding dispute.

DeWine rejects the ODOT funding plan

Governor Mike DeWine agrees that high fuel prices are hurting Ohioans, but he opposes tapping transportation money. He called using ODOT funds to cover the holiday a “very, very bad idea.”

DeWine said the agency’s cash is already tied to projects people requested. His position matters because a bill clearing both chambers must reach his desk.

Townships depend on each gallon

Ohio townships receive about 6% of the state’s 38.5-cent gasoline tax. They use that share to maintain 41,387 miles of township roads, according to the Ohio Township Association.

Townships maintain 34% of Ohio’s roads but receive about 21% of gas-tax dollars distributed to local governments. That imbalance explains demands for a full, reliable backfill plan.

Harvest makes timing important

Ohio grain farmers will use nearly two-thirds of their annual fuel needs during the next 6 to 8 weeks, state lawmakers said. That makes the proposed pause especially timely for the fall harvest.

Fuel powers harvesting and grain transport. Each farm’s savings will depend on the gallons purchased during that fuel-intensive window and the equipment it operates.

Election timing raises the stakes

Democrat Amy Acton called for an emergency gas-tax holiday hours before Republican Vivek Ramaswamy announced his plan. Both are running for Ohio governor in the statewide 2026 election.

Lawmakers had not planned to return from recess until after the November 3 election. The session lands 6 days before early voting, raising the stakes of the campaign statewide.

Democrats hold key emergency votes

Republicans control both Ohio legislative chambers, but an immediate start still requires Democratic votes. An emergency measure requires two-thirds support in each chamber, including at least two House Democrats, even if every Republican votes yes.

Without that threshold, a bill would wait 90 days to take effect. That delay defeats timing, making some Democratic support essential.

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A tax cut cannot control oil costs

Ohio’s tax is one part of the gasoline price. Crude oil, refining, distribution, marketing, and federal, state, and local taxes all shape what drivers see on station signs.

Crude oil is the largest component, according to federal energy analysts. A 38.5-cent suspension can lower prices, but it cannot offset an oil shock or refinery disruption.

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Should Ohio approve a 90-day gas tax holiday if it could cost the state up to $700 million in transportation funding? Share your view in the comments.

This slideshow was made with AI assistance and human editing.

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