Ohio Republican lawmakers are moving forward with plans to bring legislation for a 90-day state gas tax holiday to a vote, with Ohio Senate President Rob McColley and Ohio House Speaker Matt Huffman committing to call their members back to the Statehouse. The chambers are planning to be in session next Wednesday, Sept. 30, to consider the proposal. The initiative follows similar calls from Republican candidate for governor Vivek Ramaswamy, who introduced his plan Wednesday, and Democratic candidate Amy Acton, who also supported a halt to the tax.
The proposed holiday would suspend the state's gas tax of 38.5 cents per gallon and diesel tax of 47 cents per gallon for three months. These taxes typically generate approximately $2.6 billion annually, funding vital work on Ohio's roads and bridges.
Ramaswamy’s plan aims to replace the estimated $640 million to $700 million in lost revenue, as projected by Huffman, by drawing cash from state transportation balances, then the general revenue fund, and potentially the rainy-day fund. McColley expressed confidence that the state’s fiscal stewardship would allow it to absorb the tax break without needing to tap into its reserves.
However, Ohio’s Office of Management and Budget (OBM) provided clarification on the state’s financial capacity. OBM Spokesman Pete LuPiba explained that the Ohio Department of Transportation has no cash balance left in its current budget for such a purpose. LuPiba noted that while the Highway Operating Fund has a balance just under $1.6 billion, this amount fluctuates daily and supports $5 billion in open purchase orders for operations, maintenance, and capital improvements. He emphasized there is no money in that account not already planned for future projects.
The Ohio Contractors Association, representing the highway and utility construction industry, promptly cautioned against the potential loss of tax revenue. Association President Chris Runyan stated that any temporary suspension must include replacement funding to ensure state and local transportation programs remain whole and that no projects are delayed, deferred, or canceled. Runyan underscored the importance of Ohio's transportation investments to the state’s economy.
The push for a gas tax holiday comes amid rising costs for gas and diesel fuel. Ramaswamy, Huffman, and McColley attributed the sharp increase to ongoing conflicts in Ukraine and Iran, with Ramaswamy also referencing "Russian refinery issues." All three men stressed that the financial strain on Ohio families and businesses compelled them to act.
Governor Mike DeWine’s stance on the proposal remains uncertain. In 2019, he negotiated a gas tax increase, and earlier this year, he dismissed a similar proposed gas tax holiday. Despite this, McColley indicated that he has spoken with DeWine and believes the governor remains open-minded about their current plan. A spokesman for the governor’s office said they have not yet issued any statements on these proposals.
The Acton campaign claims credit for initiating the discussion, with spokesperson Addie Bullock stating Acton would work with anyone, Republican or Democrat, to deliver for Ohioans. Bullock also emphasized that Acton raised the idea first and that Vivek Ramaswamy is following Acton’s leadership with emergency relief at the gas pump. Ramaswamy, conversely, contended his proposal is distinct, stating he is working with the legislature to lead through action rather than through statements. He criticized Acton for a perceived lack of specific details in her proposal, questioning her qualifications to lead the state if she could not offer specifics.
Ramaswamy, Huffman, and McColley dismissed suggestions that their proposal is a politically motivated effort to boost Republican turnout ahead of the midterm election. Huffman repeatedly said "this is not a radical proposal" and asserted that discussions around a gas tax holiday have been ongoing for months. McColley added that for lawmakers to remain inactive during a time of fiscal emergency for families and Ohioans, simply because an election is approaching, would be an abdication of their duties.
To ensure the tax cut takes effect immediately, Huffman said the legislation would need an emergency clause. This would require buy-in from Democrats, as Republicans would need their votes to meet the necessary threshold. Huffman warned that Democrats who vote against the measure would be doing so at their peril, framing it as a straightforward issue of providing tax relief without interrupting road funding.
Ohio House Minority Leader Dani Isaacsohn, while acknowledging Ohioans desperately need relief from the costs of the failed war in the Middle East, criticized Ramaswamy’s plan. Isaacsohn stated Ramaswamy’s knee-jerk response demonstrated a lack of understanding of state government operations, budget structure, and taxpayer spending. He reiterated that the Ohio Department of Transportation lacks surplus funding, suggesting Ramaswamy’s reliance on it demonstrates "confusion" or "recklessness." Isaacsohn proposed an alternative funding source, suggesting a gas tax holiday could be paid for with the $600 million the Republican legislature has tried to allocate to billionaire Jimmy Haslam for his NFL team. Huffman laughed when asked for comment on Isaacsohn's suggestion and declined to provide one.
