Rep. Lawson-Rowe Votes No on Gas Tax Holiday
COLUMBUS — State Rep. Meredith Lawson-Rowe (D-Reynoldsburg) today voted not to concur on amendments made to House Bill 519 appropriating $750 million in state funds to a 90-day suspension of the motor fuel excise tax, known commonly as the “gas tax”.
“I strongly believe Ohioans deserve relief at the pump from crippling surging gas prices; however, I do not believe House Bill 519 was the best provision of relief,” said Rep. Lawson-Rowe. “While this may provide relief for a season, high gas prices are only a portion of the broader affordability crisis facing families across our state.”
The current motor fuel excise tax in Ohio accounts for 38.5 cents-per-gallon on regular gasoline prices and 47-cents-per-gallon on the price of diesel and other forms of gasoline. House Bill 519, as amended, includes provisions to suspend these costs for 90 days.
According to AAA, average regular gas prices in Ohio are $4.24 a gallon and average diesel prices are $6.68 a gallon. If the suspension is instituted today, these prices would lower to an average of $3.86 and $6.21 a gallon, respectively, which is still higher than the peak regular and diesel gas price averages of $3.70 and $4.10 a gallon, respectively, in 2024.
The bill also contains appropriations of $725 million in state taxpayer general revenue funds (GRF) to offset revenue losses from the rate reduction, and $250,000 in GRF to cover administrative expenses resulting from the institution of the suspension.
The legislation requires gas tax savings to be passed on to consumers and requires itemized receipts when requested, though it does not give individual consumers a direct mechanism to seek recourse if they feel this protection has been violated.
“A commitment of this large amount of taxpayer money deserves more through vetting than this proposal received,” added Rep. Lawson-Rowe. “We have to ask ourselves is the state capable administratively and financially of executing this gas tax holiday and will residents be better off in the long run for it.”
House Bill 519 now heads to the Governor’s office and awaits his action.