Gov. DeWine signs 10.5-cent gas tax hike, eliminates front license plate requirement
Jessie BalmertCOLUMBUS - Ohioans will pay more at the pump starting this July, thanks to a 10.5 cents-per-gallon gas tax increase signed into law by Gov. Mike DeWine Wednesday.
The 10.5 cents-per-gallon increase on motor fuel and 19 cents-per-gallon increase on diesel approved by Ohio lawmakers were less than what DeWine initially requested. But the GOP governor’s proposed 18 cents-per-gallon increase was too high for his fellow Republicans in the Ohio Legislature.
After DeWine accepted a number lower than his “bare minimum,” Ohio lawmakers in the House and Senate squabbled for days over the right rate to pay for Ohio’s crumbling roads and bridges while not unnecessarily raising taxes for the state’s drivers. Business groups also fought against higher diesel taxes.
On Tuesday, Ohio lawmakers sent the two-year transportation budget to DeWine with a 70-27 vote in the Ohio House of Representatives and a 22-10 vote in the Ohio Senate.
DeWine signed the gas tax increase into law Wednesday without vetoing any provisions of the . After the changes, Ohioans would pay 38.5 cents per gallon in state motor fuel tax starting in early July – the 10th highest rate in the county, according to the Tax Foundation.
“We faced a crisis. We had to fix the crisis. We are fixing the crisis today by the action taken by the Senate and the House,” DeWine said Tuesday.
The compromise would bring in $865 million more each year in gas tax money – $524 million for state projects and $381 million for local governments' projects.
Ohio eliminates the front license plate
Ohio lawmakers also decided to eliminate the front license plate requirement starting July 1, 2020 after a push from the Ohio House to get rid of it.
Opponents of the front license plate say it devalues vehicles by drilling holes into the front bumper. Nineteen states, including Kentucky and Indiana, do not have front license plates. But law enforcement in Ohio pushed to keep both license plates, saying it helps them to catch criminals.
DeWine said Tuesday that eliminating the front license plate "is not something that I’m excited about." DeWine, who called the plate "a tool for law enforcement," said he pushed for a delay in eliminating the plate so Ohio can study alternatives.
Get unlimited access to local news:It's more than just a subscription
Too high, too low, just right?
The key debate was over how much to raise fees on fuel. A recent Baldwin Wallace University poll showed 55.4 percent of Ohioans opposed an 18 cents-per-gallon increase to the gas tax. Lawmakers in the Ohio Senate argued that residents were unhappy with any substantial increase.
"For me, the rate just got too high," said Sen. Bob Peterson, R-Sabina, who voted against the hike.
Locally, Rep. John Becker, R-Union Township in Clermont County; Rep. Candice Keller, R-Middletown; Rep. Brigid Kelly, D-Hyde Park; Rep. Jessica Miranda, D-Forest Park; and Sen. Joe Uecker, R-Miami Township, voted against the gas tax hike in the two-year transportation budget. Kelly said in a statement that Ohio was paying for roads and bridges "on the backs of working people.” Uecker said the tax was too high, and he opposed eliminating the front license plate.
But Speaker Larry Householder, who won the job with support from House Democrats, was particularly vocal about the need for a higher gas tax, arguing lawmakers needed to put policy before politics.
"Because at the end of the day, the reason that people elect us is to come here and make tough decisions for them because they can't be here to make those tough decisions," Householder told reporters.
Money for public transportation and more
Democrats also pushed for more money for public transportation. Ohio currently spends $33 million per year on local transit using federal money, which can be used for roads or other transportation purposes. Lawmakers agreed to increase that amount to $70 million a year using state money.
Other changes to the state's two-year transportation budget include:
- Adding an annual registration fee of $100 for gas hybrids and $200 for electric vehicles and plug-in hybrids.
- Allowing Hamilton County transit to levy a sales tax that collects money for roads as well.
- Prohibiting riding a skateboard behind a vehicle.
- Requiring the Ohio Department of Transportation to study the Eastern Bypass by Dec. 31.
- Increasing the Ohio earned income tax credit from 10 percent to 30 percent of an individual's federal tax credit, and removing a credit cap for taxpayers with income above $20,000.
- taking away local governments' money if they use red-light cameras for tickets.
More:Poll: Ohioans don't want 18-cents-per-gallon gas tax hike; divided on 'heartbeat' abortion ban
More:Ohio lawmakers will miss deadline for transportation budget, gas tax hike debate continues