Ohio lawmakers have approved a 90-day suspension of the state’s gas and diesel taxes, sending the measure to Governor Mike DeWine’s desk for his signature.
The Ohio House and Senate both approved the legislation Wednesday with bipartisan support. Because the measure includes an emergency clause, the tax holiday would take effect immediately once it is signed by DeWine. Lawmakers say that could happen as early as Thursday, October 1.
The legislation would temporarily suspend Ohio’s 38.5-cent-per-gallon tax on gasoline and 47-cent-per-gallon tax on diesel.
The state plans to use about $725 million from the General Revenue Fund to make up for the lost fuel-tax revenue that normally helps pay for transportation projects.
Lawmakers estimate the average Ohio driver could save a little more than $80 during the 90-day tax holiday, although actual savings at the pump could vary.
The measure comes as gas and diesel prices have climbed sharply. The average price of regular gasoline in Ohio was about $4.43 per gallon Wednesday, while diesel averaged about $6.41 per gallon, according to AAA.
If signed, Ohio would join a growing number of states taking temporary action to address higher fuel costs.
In other states, Georgia has suspended its fuel taxes at different points this year, while Indiana has extended a fuel-tax exemption through October 5. Utah has temporarily reduced its fuel tax, and Illinois and Kentucky have also provided temporary fuel-tax relief.
Several states have taken a different approach for diesel. Alabama, Arkansas, Louisiana, Missouri, Nebraska, North Carolina, North Dakota, Oklahoma and Texas have temporarily relaxed rules allowing tax-exempt dyed diesel to be used on public roads, providing additional relief to farmers and other agricultural users.
In Ohio, the next step is Governor DeWine’s signature. Once signed, the emergency legislation would put the 90-day gas tax holiday into effect immediately.
