How does Ohio pay for the maintenance of Ohio’s roads and bridges?
Most of the revenue (70%) comes from Ohio’s fuel tax, which is currently, 38.5 cents per gallon for gasoline and 47 cents per gallon for diesel. When people fill up their tanks and pay for their fuel, part of the price they pay is the state’s fuel tax which funds road and bridge maintenance. Vehicle registration fees are the second largest transportation funding source for Ohio. For passenger vehicles, the annual renewal fee is $31. In 2019, Ohio imposed an additional annual fee of $100 for hybrid vehicles and $200 for electric vehicles.
If 70% of the money to maintain and expand Ohio’s roadways and bridges comes from a gas tax, what makes up the other 30%?
27% of the money used to maintain and expand Ohio’s roads and bridges comes from vehicle registration fees and 3% comes from other revenue sources like the state’s general fund.
How much is Ohio’s gas tax?
Ohioans pay 38.5 cents per gallon for gasoline tax and 47 cents per gallon for diesel. In addition, the federal fuel tax is 18.4 cents per gallon for gas and 24.4 cents per gallon for diesel.
When the gas tax is paid, where does it go?
Ohio user fees include gas taxes, registration, permits, and title fees. These fees are paid by the users and fuel suppliers of the transportation system and are dedicated for transportation use in the state by the Ohio Constitution.
Why is Ohio looking at alternative funding options?
As Ohioans buy increasingly fuel-efficient vehicles and alternate fuel vehicles like electric vehicles, the number of gallons of fuel consumed is declining, resulting in less money for our roadways. By 2040, Ohio will have a $635M funding gap each year and growing. The state and counties depend on those taxes for road upkeep and construction. Ohio received a federal grant to study a variety of funding options to replace the fuel tax and stabilize transportation revenues in Ohio well into the future.
Why is this research necessary?
More Ohioans are driving high-mileage gas vehicles and hybrid or electric vehicles, which has welcomed environmental benefits but decreases the amount of gas being purchased. With fewer gallons of gas being purchased, the gas tax revenue is declining. Ohio DOT is evaluating a variety of funding options to replace the fuel tax and stabilize transportation revenues in Ohio well into the future.
When was the last time Ohio raised its gas tax?
In 2019, Ohio raised the state gas tax by 10 cents/gallon and the state diesel tax by 19 cents/gallon. Prior to this increase, the state fuel tax had not changed since 2005.
If you drive an all-electric vehicle do you pay a gas tax?
All-electric vehicles do not pay gas tax since they don’t use gas. However, in Ohio they do pay a $200 a year registration fee that goes into the transportation fund to help pay for the cost of road and bridge maintenance. This $200 fee is in addition to the $31 that every vehicle owner pays to register each vehicle they own.
If you drive a hybrid vehicle do you pay a gas tax?
Yes, but because the vehicle operates with electricity and fuel, the vehicle uses less fuel and therefore the owner pays less in gas taxes than average gasoline-powered engines. Thus, in Ohio a hybrid engine vehicle owner pays an additional $100 registration fee to cover the cost of road and bridge maintenance on top of the $31 registration fee.
Do income, sales or property taxes go into the transportation fund?
No, those taxes go into the state’s general fund.
What are other states doing?
Other states are facing similar challenges in funding roads and bridges. Several states across the U.S. are studying alternative funding options as gas tax revenues continue to decline. Oregon, Utah and Virginia have voluntary mileage-based user fee programs for high-fuel efficient and alternative fuel vehicles in lieu of paying additional registration fees.
What are the next steps?
The information collected through this research effort will be developed into a report that will be presented to the Ohio General Assembly in late spring 2023. Ultimately, it will be up to the legislature to introduce any new funding option.
How can I express my opinion or concerns?
The primary focus of this study is to gather input from Ohioans. We want to hear from you. Go to www.OhioRoadFunding.com to learn more.