Ohio's gas tax increase goes into effect today, raising
the tax to 10.5 cents per gallon of gas and 19 cents per gallon of diesel — clearly surprising a bunch of folks
who don't pay attention to the news.
Gov. Mike DeWine approved the increase as part of a transportation budget in April that was supported
70-27 in the House and 22-10 in the Senate.
The most recent
gas tax increase in Ohio was in 2005, which brought the tax to 28 cents per gallon.
The revenue made from gas taxes can only be used on construction and maintenance efforts on roads and bridges, as stated
in the Ohio Constitution. This revenue, which is estimated
at an additional $865 million after the increase, will be split
55/45 between state and local governments. Meanwhile, it is estimated
to cost each driver roughly $63 more per year.
However, the gas tax probably won't lead to an automatic increase in gas prices, Patrick DeHaan from GasBuddy.com told
cleveland.com. Instead, he expects prices to rise due to regional trends then decrease again, remaining at a higher floor. Therefore, the tax will hit folks harder than it would have if put into place during the winter months. Gas prices tend to rise during spring and peak during summer, with prices
averaging 35 cents higher in August than in January, according to the U.S. Energy Information Administration
Ohio's 28-cent gas tax is lower than most surrounding states
, as seen below:
Pennsylvania: 58.7 cents/gallon
Michigan: 44.1 cents/gallon
Indiana: 42.9 cents/gallon
West Virginia: 35.7 cents/gallon
Kentucky: 26 cents/ gallon
Ohio is one of 12 states
increasing its gas tax today, and it is the second largest increase, according to the Institute on Taxation and Economic Policy
. Indiana's gas tax will rise by 0.5 cents and Michigan's will rise by 0.1 cents. These gas taxes will adjust each year to match inflation, but Ohio's will not, which was requested by DeWine but rejected by Ohio's legislators.
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Screenshot of data from the Institute on Taxation and Economic Policy.