Skip to Content
Ohio Road Funding.com

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.

  1. 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 TypeAnnual Cost (Based on an estimate of 10,000 miles driven in one year)Total
    Low Efficiency 10-20 MPG
    Current Registration FeeCurrent Gas Tax - 38.5¢/gallonIncreased 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 FeeCurrent Gas Tax - 38.5¢/gallonIncreased 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 FeeCurrent Gas Tax - 38.5¢/gallonIncreased 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 FeeCurrent Gas Tax - 38.5¢/gallonIncreased 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 FeeCurrent Gas Tax - 38.5¢/gallonIncreased 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.

  2. 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 TypeAnnual Cost (Based on an estimate of 10,000 miles driven in one year)Total
    Low Efficiency 10-20 MPG
    Current Registration FeeIncreased Registration FeeCurrent Gas Tax - 38.5¢/gallon
    $31Current Registration Fee$50Increased Registration Fee$257Current Gas Tax - 38.5¢/gallon
    $338
    Average Efficiency 20-30 MPG
    Current Registration FeeIncreased Registration FeeCurrent 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 FeeIncreased Registration FeeCurrent Gas Tax - 38.5¢/gallon
    $31Current Registration Fee$50Increased Registration Fee$96Current Gas Tax - 38.5¢/gallon
    $177
    Hybrid 30-50 MPG
    Current Registration FeeIncreased Registration FeeCurrent Gas Tax - 38.5¢/gallon
    $131Current Registration Fee$50Increased Registration Fee$96Current Gas Tax - 38.5¢/gallon
    $277
    Electric No Fuel
    Current Registration FeeIncreased Registration FeeCurrent 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.

  3. 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 TypeAnnual Cost (Based on an estimate of 10,000 miles driven in one year)Total
    Low Efficiency 10-20 MPG
    Current Registration FeeMileage-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 FeeMileage-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 FeeMileage-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 FeeMileage-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 FeeMileage-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.