Ohio drivers will see relief at the pump starting today as the state’s 90-day suspension of the gas and diesel tax takes effect, a move lawmakers pushed through in a politically charged session last week.
The legislation, folded into House Bill 519, suspends the 38.5-cent-per-gallon tax on gasoline and the 47-cent-per-gallon tax on diesel fuel for 90 days. The bill cleared the Senate 26-5 and the House 78-16 on Wednesday, and Gov. Mike DeWine is expected to sign it. Because the road money those taxes fund is effectively already spent on projects, the roughly $725 million hole will be filled with general revenue dollars.
The tax holiday became a campaign issue last week when both gubernatorial candidates — Republican Vivek Ramaswamy and Democrat Amy Acton — called for its passage within hours of each other. Midwest diesel prices had just reached an all-time high of $6.68 a gallon, while regular gas hit its highest levels since May, according to federal data. Ramaswamy has since touted his role in getting the suspension passed, though Acton had made the call first.
Republican legislative leaders called members back to Columbus for the unexpected vote, and the debate at times grew contentious. Senate Republicans used a rarely invoked procedural maneuver to block Democrats from offering amendments on unrelated subjects, and House Speaker Matt Huffman repeatedly warned Democrats their floor speeches could be cut off. The Ohio Legislative Black Caucus criticized the rushed process, saying it would not provide adequate relief to working Ohioans.
The question now is how much drivers will actually save. History suggests they will not see the full amount. Research from the Wharton Business School at the University of Pennsylvania found that past gas tax holidays passed on anywhere from 58 percent of the tax in Georgia to 87 percent in Connecticut, with other studies landing between 70 and 80 percent. Ramaswamy has promised families with two drivers could save $165, and diesel truck drivers as much as $1,800, but market behavior and the supply chain make a dollar-for-dollar drop unlikely.