Ramaswamy, Ohio GOP leaders propose suspending state gas tax for 90 days
Republican gubernatorial candidate Vivek Ramaswamy and Ohio legislative leaders are backing a plan to suspend the state’s gas and diesel taxes for 90 days.
The proposal, announced Monday with House Speaker Matt Huffman, R-Lima, and Senate President Rob McColley, R-Napoleon, would suspend Ohio’s 38.5-cent-per-gallon tax on gasoline and 47-cent-per-gallon tax on diesel and other motor fuels.
Regular gasoline averaged $4.52 per gallon in Ohio on Monday, up from $4.16 a week earlier and $3.04 a year earlier, according to AAA.
Ramaswamy said legislation implementing the proposal is expected to be introduced this week. He is scheduled to hold a press conference Wednesday with Huffman and McColley to discuss details of the legislation.
“I’ve partnered with Ohio’s legislative leaders to create a sensible plan to immediately reduce prices at the pump for Ohioans,” Ramaswamy said. “Every trip to the grocery store, every fill-up at the pump, every monthly bill costs too much.”
The proposal would replace revenue normally generated by the motor fuel tax using money from the Ohio Department of Transportation’s ending cash balance, followed by the state’s General Revenue Fund and, if necessary, the Budget Stabilization Fund, commonly known as the Rainy Day Fund.
The plan also calls for replenishing money drawn from ODOT and the Budget Stabilization Fund with savings Ramaswamy says Ohio could generate by combating Medicaid fraud.
Ramaswamy proposed a Medicaid fraud plan in May that included seeking a federal agreement allowing Ohio to retain a greater share of money recovered through fraud enforcement.
“I’m grateful that future Governor Ramaswamy is already stepping up to the plate to lead, and I look forward to working with him to enact his plan into law immediately,” Huffman said.
Huffman’s support comes months after he expressed concerns about an earlier proposal to temporarily reduce Ohio’s motor fuel taxes.
As Ohio.News previously reported, House Bill 850, sponsored by state Reps. Ty Mathews, R-Findlay, and Adam Bird, R-New Richmond, proposed cutting the gasoline and diesel taxes in half for three months.
Huffman said in May that suspending the tax would reduce funding available for road construction, infrastructure projects and the State Highway Patrol.
“If we do consider doing that, I think there needs to be a trigger that is the price of gasoline drops below a certain level, then the tax goes back in,” Huffman said at the time.
The new proposal differs from House Bill 850 by suspending the full tax for 90 days while proposing to replace the lost motor fuel tax revenue with other state funds.
Gov. Mike DeWine also opposed suspending the state gas tax earlier this year, arguing the revenue is necessary to maintain Ohio’s roads and bridges.
Ramaswamy’s announcement came the same day Democratic gubernatorial candidate Amy Acton called for an emergency gas tax holiday.
“I am calling for an emergency gas tax holiday to offer Ohio’s working families some relief,” Acton said. “We are facing an affordability crisis in Ohio, from rising grocery bills to skyrocketing prescription drug costs.”
Acton’s announcement did not specify how long the suspension would last or identify a replacement funding mechanism.
At the current state tax rate, the proposal would suspend 38.5 cents per gallon in state gasoline tax for 90 days. A 15-gallon fill-up contains about $5.78 in state gasoline tax.
If lawmakers do not enact the proposal this year, Ramaswamy said he would pursue the legislation if elected governor and would be prepared to call a special legislative session.
