Senator Koehler Approves the Suspension of Ohio's Gas Tax

COLUMBUS—State Senator Kyle Koehler (R-Springfield) voted alongside his colleagues in the Ohio Senate to suspend Ohio's gas tax for the next 90 days.

Ohio's current Motor Fuel Tax (MFT) applies a 38.5 cent tax per gallon of gas and a 47 cent tax per gallon of diesel. As a result of the suspension, Ohioans are estimated to save $725 million in fuel taxes at the pump.
 
Providing relief in the face of rising prices is good governance, said Senator Koehler. By enacting a fiscally responsible plan to suspend the gas tax, Ohioans will see savings that they can apply to other areas of their budget. I'm proud to have supported this legislation and look forward to seeing the positive effect it will bring to Ohio.

For accounting purposes, the MFT will be reduced to 1/100th of a cent per gallon which also protects certain border counties from seeing unintended tax consequences due to neighboring states levying their own tax on fuel sold into Ohio if no other tax is levied.

The state will not tap into it's "Rainy Day Fund," otherwise known as the Budget Stabilization Fund, as highway construction projects and local governments funded by the MFT will be covered using budget surpluses from this fiscal year during the tax suspension.

To read more about the legislation, click here.