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Ohio’s 90-day fuel-tax break shifts $700 million burden to general fund

Ohio lawmakers approved a 90-day suspension of the state’s gasoline and diesel taxes, a measure supporters say could trim several dollars from a fill-up. The move comes weeks before the Nov. 3 election and will leave the state general fund to replace an estimated $700 million in transportation revenue.

Ohio’s 90-day fuel-tax break shifts $700 million burden to general fund
COLUMBUS, Ohio — Ohio legislators voted Wednesday to suspend the state’s taxes on gasoline and diesel for 90 days, a temporary break supporters say could save drivers about 40 cents per gallon through the December holidays. Gov. Mike DeWine’s spokesperson said the governor would sign the bill; because it passed as an emergency measure, it is set to take effect when signed. The measure passed 26-5 in the Senate and 78-16 in the House during a special session. Ohio’s tax is currently 38.5 cents per gallon on gasoline and 47 cents on diesel. Lawmakers estimate drivers could save $3 to $7 per fill-up. In Franklin County, gasoline was averaging $4.42 per gallon, according to AAA. The tax helps pay for Ohio roads and the State Highway Patrol. Suspending it is expected to reduce revenue by about $700 million, which the bill directs the state’s general fund to cover. It also sets aside $1 million for gas stations that request assistance, with payments of $125 per station. The break does not apply to other fuels, including propane and compressed natural gas. The vote followed a rushed session while the legislature is on an extended recess scheduled to last until after the Nov. 3 election. The proposal was announced the previous week by Statehouse Republicans alongside Republican gubernatorial candidate Vivek Ramaswamy. Both candidates for governor had publicly called for suspending the tax. Democrats questioned the timing and process. State Sen. Bill DeMora, a Columbus Democrat who voted against the bill, argued that global tensions and the war in Iran could erase any savings at the pump. He also criticized the Senate proceedings, saying Democrats were not allowed to speak on the floor. Democratic lawmakers sought amendments, including one that would have used unclaimed funds earmarked for a proposed Cleveland Browns stadium, but those efforts were blocked. “We were very clear, we were coming here to vote on this issue and this issue only, and the Democrats should have realized that as well,” Senate President Rob McColley said. House Minority Leader Dani Isaacsohn, a Cincinnati Democrat, said the proposal should have been considered earlier, when gasoline prices rose during the summer. Some Democrats said the measure could benefit Ramaswamy’s campaign; Republicans rejected that allegation. Senate Minority Leader Nickie Antonio also questioned whether McColley’s role in advancing the bill while serving as Ramaswamy’s running mate presented a conflict of interest. McColley said he consulted the joint legislative ethics committee and was told the concern was “without merit.”

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