Gas tax holiday proposal gets first hearing in Ohio Senate

Ohio senators got their first chance Tuesday to discuss a gas tax holiday Republican leaders announced last week. The GOP is aiming to pass its plan with an emergency clause so the measure can take effect immediately. To do that, they’ll need to pick up Democratic votes in the House.

If the reaction among state Senators is any indication, they could be met with skepticism.

The plan

The 90-day tax break comes on the eve of November’s election. Midterms are historically challenging for the party in power, and with price of gas and diesel surging, state leaders are getting antsy.

Democratic candidate for governor Amy Acton first floated the idea of suspending the gas tax. Her Republican opponent Vivek Ramaswamy quickly took up the call and announced he had a plan to pay for it and the backing of statehouse leaders, one of whom is his running mate.

That running mate, Republican Ohio Senate President Rob McColley, praised Ramaswamy and called it “unprecedented” for a nominee to pitch in even before an election.

Ohio GOP lawmakers tee up votes for gas tax holiday after Acton, then Ramaswamy, back idea

Bringing lawmakers back to the capitol to pass emergency legislation weeks before an election is unusual.

The distinction McColley touted between the GOP proposal and what he called Acton’s “empty rhetoric,” however, crumbled between the plan’s announcement and the measure’s drafting.

Gas taxes fund work on the state’s roads and bridges. Initially, Ramaswamy’s proposal would’ve relied on the Ohio Department of Transportation’s surplus cash balance. But all the department’s cash is spoken for, and Gov. Mike DeWine shot down the idea of raiding ODOT’s coffers.

So instead, lawmakers are essentially looking to the state’s checking account — dipping into the general revenue fund for the $725 million needed to cover lost revenue.

The bill and the critiques

Ohio state Sens. Michele Reynolds, R-Canal Winchester, and Jane Timken, R-Jackson Twp., are sponsoring Ohio Senate Bill 475.

“Ohioans have made their voices loud and clear,” Timken said. “They want relief at the pump, and they want their hard-earned dollars to work for them. We owe it to the people of Ohio to provide relief during this time of financial hardship.”

The current tax rate is 38.5 cents for gas and 47 cents for diesel.

“For a 20 gallon fill up, this equals a savings of nearly $7.70,” Reynolds said.

Democrats on the committee questioned how impactful those savings would be. According to AAA, Ohio’s average gas price on Sept. 29 is $4.27.

Even filling up that 20 gallon tank weekly, a driver would see their gas bill of $1,026 gas over 12 weeks drop to $933.62. That’s not nothing, but the state is putting up significant money to get there, they noted.

Ohio state Sen. Willis Blackshear, D-Dayton also questioned the timing.

‘Very bad idea.’ Ohio Gov. Mike DeWine pumps brakes on proposal to suspend gas tax

“Gas spiked late February, early March,” Blackshear said. “Why are we just now starting? Why are we acting on this now?”

Reynolds pointed to diesel prices, which have risen sharply in recent weeks.

“The time is now,” she said. “Ohioans are suffering — we’re listening.”

“There are a number of things that we can’t control from the national environment,” she added, “But what we can do in Ohio, we should do, and that’s why we’re doing it.”

Ohio state Sen. Bill DeMora rejected he effort as a transparent bid to help Ramaswamy.

“It’s all a gimmick for your governor candidate who’s underwater,” he said. “That’s the only reason you’re doing this.”

Speaking after the hearing, DeMora said he wouldn’t vote for the bill even if lawmakers added an amendment “to make me the king of England,” and that Acton calling for a tax holiday first makes no difference to him.

“I’m not a sycophant,” DeMora said. “My governor candidate was wrong on this issue, and I told her she’s wrong.”

Senators expect to vote the measure out of committee Wednesday and have it on the floor in the afternoon. In the Ohio House, lawmakers are slated to introduce a companion measure Wednesday, with a floor session scheduled later in the day.

Follow Ohio Capital Journal Reporter Nick Evans on X or on Bluesky.