Ohio Governor to Propose Gasoline Tax

COLUMBUS, Oh. – Ohio Governor Mike DeWine said he will introduce a proposal to increase in the gasoline tax to “fix and improve Ohio’s crumbling roads and bridges.” The Columbus Dispatch says that to maintain the status quo of highway maintenance and major projects, the state needs $600 million a year. That equates to about 14 cents a gallon—or a 50% increase to the existing 28-cent tax.

The fuel tax has not been increased since 2005. If the change was just a one-cent increase, it would generate $67 million if the state kept 60% and local governments took 40%. But a 14-cent increase would generate $1 billion.

Gov. DeWine said the elevation will be proposed in the two-year state transportation budget he plans to submit to the House of Representatives.

The state needs to pay up $390 million in highway money to make its annual debt payment. And they’ve run out of bond money tied to leasing turnpike revenues to improve roads. The Dispatch reported that the state issued $2.1 billion in construction contracts this year, adding that it’s set to drop to $1.5 billion next year with no new revenue. According to Transportation Director Jack Marchbanks, the state needs $1 billion per year to provide optimal funding for major road construction, safety projects and maintenance.

“You have to have a gas tax increase, there’s no doubt,” DeWine said. “The day of reckoning is finally here and we have an obligation to face that.”