COLUMBUS – An agreement among Ohio lawmakers on raising the state’s gasoline tax was a successful compromise, as defined in the political realm: It satisfied no one but everyone praised the spirit of cooperation that created it.
Ohio Senate Pres @LarryObhof: This is a budget that makes Ohio stronger and contains significant provisions to keep government accountable to the taxpayer whose hard-earned dollars help upkeep our roads and bridges. pic.twitter.com/G4mXeEUoHP
— Ohio Senate GOP (@OhioSenateGOP) April 2, 2019
Ohio’s House and Senate Tuesday approved a proposal to increase the state tax on gas by 10.5 cents a gallon and the tax on diesel fuel by 19 cents to maintain deteriorating roads and bridges.
Governor Mike DeWine said he will sign the measure as soon as possible, clearing the way for the new taxes to take effect July 1.
“We faced a crisis, we had to fix the crisis, we are fixing the crisis today by the actions of the Senate and the House,” said DeWine, who called for an 18-cent-a-gallon hike.
Both chambers voted to approve the long-awaited compromises on the tax increases in the state transportation budget, which cleared a conference committee earlier Tuesday.
“This bill is a good compromise, making substantive investments in our local communities to fix roads and bridges without overburdening working people, seniors and families,” said Rep. Jack Cera, of Bellaire, the ranking Democrat on the House budget committee.
“We’re looking at the first major legislation passed under the new administration, and it was built on compromise and bipartisanship,” said Rep. Michael Sheehy (D-Toledo).
The deal also includes a 12.5 percent increase in the share of new gas tax revenue for local communities, resulting in over $700 million during the next two years.
“I’m pleased that we were able to successfully negotiate across the aisle to protect many of our previous Democratic demands for the people of Ohio like safe roads and bridges, more money for local governments and a historic investment in public transit,” said Rep. Allison Russo (D-Upper Arlington).
The increases mean Ohioans would pay a state tax rate of 38.5 cents per gallon on gas and 47 cents a gallon on diesel fuel. If it took effect immediately, it would have increased the average price of a gallon of regular gasoline in Ohio to $2.81 and a gallon of diesel to $3, an increase of approximately 4 percent and 7 percent respectively.
A motorist driving 13,000 miles would pay about $57 more per year.
“Our roads and bridges are simply in a state of despair and the General Assembly needed to raise the gas tax,” Sen. Hearcel Craig (D-Columbus) said. “Although I am concerned about the impact on working families, I am thrilled about the $70 million increase to public transit and the 30 percent increase in the earned income tax credit.”
The bill also increase the state’s Earned Income Tax Credit for low- and moderate-income Ohioans from 10 percent to 30 percent of the federal tax credit.
“Our coalition believes a higher increase, with an indexing provision to offset the effects of inflation, would have been even better for Ohio in the long run, but there’s no question that today’s significant bipartisan package to increase roadway support and additional funding for public transit is a very positive outcome,” said Curt Steiner, a spokesman for Fix Our Roads Ohio, a group of transportation and business leaders that pushed for the 18-cent increase.
The budget plan also would allow for removal of front license plates starting July 1, 2020, and would boost public transportation funding by adding $70 million a year.
“The Ohio legislature took a couple of good steps in the right direction…Over the long run, we will continue to advocate for further increases in funding for public transit, and putting it back in the transportation budget where it belongs,” said Amanda Woodrum, senior researcher for the progressive-leaning Policy Matters Ohio.
Other provisions in the remove local government funding for traffic cameras, prohibits skateboards from being attached to motor vehicles and creates an Emergency Snowfall Fund for communities that receive 18 or more inches of snow in one event.