Senate Approves Gas Tax Suspension
Columbus—Senate President Rob McColley announced the passage of a bill suspending Ohio's 38.5 cent per gallon gas tax and 47 cent per gallon diesel tax for 90 days.
Ohioans are estimated to save more than $725 million in fuel taxes at the pump.
"This represents significant savings that hard working families need now more than ever," said Senate President Rob McColley. "Senate Republicans have a long history of reducing the tax burden ranging from reducing income taxes to enacting significant property tax reforms and this reinforces our belief that your paycheck starts with you instead of the government."
The MFT (Motor Fuel Tax) suspension covers gas and diesel only.
For accounting purposes the MFT will be reduced to 1/100th ($0.0001) of a cent per gallon which also protects certain border counties from seeing unintended tax consequences due to neighboring states charging their own tax on fuel sold into Ohio if no other tax is levied.
Highway construction projects and local governments will not be negatively affected by the gas tax suspension as budget surpluses from this fiscal year will cover the tax holiday.
The state's "Rainy Day Fund" otherwise known as the Budget Stabilization Fund will not be needed.
Read more about the legislation here.