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Ohio Legislature Reaches Gas Tax Deal: 10.5 Cents More Per Gallon

gas pump
David Zalubowski
Associated Press

A committee of the Ohio House and Senate has 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. The funds will go to maintaining deteriorating roads and bridges.

The joint conference committee approved the increases Tuesday. The compromises on the tax increases in the state transportation budget were expected to be approved by the full House and Senate later Tuesday.

Both new tax rates would start July 1.

The proposed increases would mean Ohioans would pay a state tax rate of 38.5 cents per gallon on gas and 47 cents a gallon on diesel fuel.

The hike is significantly below the amount Gov. Mike DeWine initially proposed, 18 cents per gallon, which the governor said was necessary to fill a $1 billion gap in road contruction funding.

On Friday, DeWine and House Speaker Larry Householder reached a deal that would raise the taxes by 11 cents for gas and 20 cents for diesel. But they couldn't quite convince the Senate, which wanted just 8.5 cents for gas and 13 for diesel.

Lawmakers missed Sunday's midnight deadline to approve a transportation budget. But the final compromise ended up closer to the House's proposal than the Senate's.

The conference report on the transportation budget approved Tuesday also allows for the removal of front license plates starting July 1, 2020.