Potential SolutionsWhat does the future of transportation funding look like?
The Ohio Department of Transportation (ODOT) is currently studying a number of potential solutions to address Ohio’s transportation funding challenges. ODOT is exploring 30 different potential revenue alternatives, some of the options being studied are described below.
Raise The Gas Tax
One way to address the funding challenges would be to raise the gasoline tax. The example below assumes an increase in the current gas tax of 10 cents per gallon.
Annual Cost (Based on an estimate of 10,000 miles driven in one year) Vehicle Type Annual Cost (Based on an estimate of 10,000 miles driven in one year) Total Low Efficiency 10-20 MPG Current Registration Fee Current Gas Tax - 38.5¢/gallon Increased Gas Tax - 48.5¢/gallon $31Current Registration Fee $257Current Gas Tax - 38.5¢/gallon $66Increased Gas Tax - 48.5¢/gallon $354 Average Efficiency 20-30 MPG Current Registration Fee Current Gas Tax - 38.5¢/gallon Increased Gas Tax - 48.5¢/gallon $31Current Registration Fee $160Current Gas Tax - 38.5¢/gallon $42Increased Gas Tax - 48.5¢/gallon $233 High Efficiency 30-50 MPG Current Registration Fee Current Gas Tax - 38.5¢/gallon Increased Gas Tax - 48.5¢/gallon $31Current Registration Fee $96Current Gas Tax - 38.5¢/gallon $22Increased Gas Tax - 48.5¢/gallon $149 Hybrid 30-50 MPG Current Registration Fee Current Gas Tax - 38.5¢/gallon Increased Gas Tax - 48.5¢/gallon $131Current Registration Fee $96Current Gas Tax - 38.5¢/gallon $22Increased Gas Tax - 48.5¢/gallon $249 Electric No Fuel Current Registration Fee Current Gas Tax - 38.5¢/gallon Increased Gas Tax - 48.5¢/gallon $231Current Registration Fee $231 Note: Assumes drivers continue to pay the vehicle registration of $31 for all passenger vehicles and an additional $100 for hybrid vehicles and $200 for electric vehicles.
Increase Registration Fees
Another funding option being explored is increasing current registration fees. The example below assumes an increase of $50 for all passenger vehicles. The existing additional registration fees charged to drivers of hybrid ($100) and electric vehicles ($200) would remain in place in this example.
Annual Cost (Based on an estimate of 10,000 miles driven in one year) Vehicle Type Annual Cost (Based on an estimate of 10,000 miles driven in one year) Total Low Efficiency 10-20 MPG Current Registration Fee Increased Registration Fee Current Gas Tax - 38.5¢/gallon $31Current Registration Fee $50Increased Registration Fee $257Current Gas Tax - 38.5¢/gallon $388 Average Efficiency 20-30 MPG Current Registration Fee Increased Registration Fee Current Gas Tax - 38.5¢/gallon $31Current Registration Fee $50Increased Registration Fee $160Current Gas Tax - 38.5¢/gallon $241 High Efficiency 30-50 MPG Current Registration Fee Increased Registration Fee Current Gas Tax - 38.5¢/gallon $31Current Registration Fee $50Increased Registration Fee $96Current Gas Tax - 38.5¢/gallon $177 Hybrid 30-50 MPG Current Registration Fee Increased Registration Fee Current Gas Tax - 38.5¢/gallon $131Current Registration Fee $50Increased Registration Fee $96Current Gas Tax - 38.5¢/gallon $277 Electric No Fuel Current Registration Fee Increased Registration Fee Current Gas Tax - 38.5¢/gallon $231Current Registration Fee $50Increased Registration Fee $281 Note: Assumes drivers continue to pay the vehicle registration of $31 for all passenger vehicles and an additional $100 for hybrid vehicles and $200 for electric vehicles.
Mileage-Based User-Fee
Another option Ohio is exploring is a mileage-based user fee which would charge people based on the number of miles they drive rather than the amount of gas they consume. This ultimately could replace the gas tax and the additional registration fees on electric ($200) and hybrid ($100) vehicles.
Annual Cost (Based on an estimate of 10,000 miles driven in one year) Vehicle Type Annual Cost (Based on an estimate of 10,000 miles driven in one year) Total Low Efficiency 10-20 MPG Current Registration Fee Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $31Current Registration Fee $180Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $211 Average Efficiency 20-30 MPG Current Registration Fee Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $31Current Registration Fee $180Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $211 High Efficiency 30-50 MPG Current Registration Fee Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $31Current Registration Fee $180Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $211 Hybrid 30-50 MPG Current Registration Fee Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $31Current Registration Fee $180Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $211 Electric No Fuel Current Registration Fee Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $31Current Registration Fee $180Mileage-Based User Fee: 1.4 ¢/mile - 1.8 ¢/mile $211 Note: Assumes drivers continue to pay the vehicle registration of $31 for all passenger vehicles and an additional $100 for hybrid vehicles and $200 for electric vehicles. The MBUF rates shown are for illustrative purposes only and should not be construed as a policy decision on rates. For the purposes of this analysis, the MBUF rate is equivalent to what the average Ohio driver currently pays in gas tax. MBUF rates would ultimately be set by the legislature.