Ohio Boosts Fuel Taxes to Support Transportation Package

April 9, 2019

Ohio lawmakers reached a bipartisan deal to generate an additional $865 million for transportation infrastructure maintenance and safety work. The legislation increases the state gas tax by 10.5 cents-per-gallon and the diesel tax by 19 cents-per-gallon. It also implements annual registration fees of $200 for electric motor vehicles and $100 for plug-in hybrid motor vehicles.

According to Washington Newsline, Ohio Department of Transportation Director Jack Marchbanks said that the state would be unable to complete highway improvement projects without new revenue. He estimated the funding gap at $1 billion. Gov. Mike DeWine, R, originally proposed a $1.2 billion package driven by an 18 cents-per-gallon increase.

Chris Runyan, president of the Ohio Contractors Association, said he expects the state to revisit the issues to increase revenue within the next few years to fully close the transportation shortfall.

“At the end of the day we got $865 million of additional dollars that are going to transportation in the state of Ohio, and on top of that, another $70 million dedicated to transit through general funds,” Runyan told Washington Newsline. “That’s going to have a positive impact on every citizen in the state.”

Source: Washington Newsline