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State Legislature to consider 90-day pause on gas tax

By DAVID SKOLNICK 7 min read

At the behest of Vivek Ramaswamy, the Republican gubernatorial candidate, the GOP-controlled state Legislature will have a special session next week to vote on a 90-day suspension of the Ohio gas tax.

Ramaswamy unveiled his proposal about six-and-a-half hours after Amy Acton, the Democratic gubernatorial nominee, called for an emergency gas tax holiday in Ohio with diesel fuel prices hitting record highs and the cost for unleaded gas continuing to increase.

On Wednesday, Ramaswamy and Republican leaders in the General Assembly, including Senate President Rob McColley, who is Ramaswamy's lieutenant governor running mate, said a special legislative session is likely going to be Sept. 30 for a vote on the 90-day gas holiday.

Before Ramaswamy's request for a special session, the Legislature has been on an extended break since mid-June with no plans to meet until after the Nov. 3 election. Ramaswamy is in a tight race for governor with Acton.

The state's tax on regular gas is 38.5 cents a gallon and 47 cents on diesel. AAA reported Wednesday that the average price of regular gas in Ohio is $4.4566 a gallon and it's $6.8167 a gallon for diesel fuel. Drivers would still pay the federal tax of 18.4 cents a gallon.

Ramaswamy said the record high for diesel is "what caused us to take action," as the cost for that results in higher prices for consumers at stores.

"The diesel prices were the final straw for us," Ramaswamy said. "Against the backdrop of a budget where we had the capacity to do it, it made all the sense in the world to see this through."

Gas prices have increased since the United States went to war with Iran seven months ago, despite President Donald Trump saying in March it would be a "short-term excursion." Also contributing to the increase of diesel fuel is Ukrainian drone attacks on Russian oil refineries.

Ramaswamy said the 90-day suspension would save the typical family about $165 in savings while a typical independent semi truck driver would save $1,800 over the 90 days.

"That's a big deal and those are direct savings," Ramaswamy said.

Ramaswamy said: "I've partnered with Ohio's legislative leaders to create a sensible plan to immediately reduce prices at the pump for Ohioans. Every trip to the grocery store, every fill-up at the pump, every monthly bill costs too much. Families badly need a real leader who takes action and delivers real relief to Ohioans."

A 90-day gas holiday in Ohio would cost the state about $678 million in lost revenue, according to Ramaswamy's campaign. The gas tax is used to fund road and bridge work.

Ramaswamy said the lost revenue would be replaced by an upfront appropriation from the Ohio Department of Transportation's ending cash balance, then the General Revenue Fund and, if needed, the state's Rainy Day Fund. The Rainy Day Fund and ODOT's cash balance would have its money restored through the state retaining more money from fighting Medicaid fraud, Ramaswamy said.

McColley, R-Napoleon, said he doubted the Rainy Day Fund would need to be touched.

Acton was first to call for an emergency gas holiday "to offer Ohio's working families some relief. We are facing an affordability crisis in Ohio, from rising grocery bills to skyrocketing prescription drug costs."

Acton said: "Ohioans are hurting. I'm hearing stories of folks who are unable to get to work or go to the doctor because they can't afford to fill up their tanks. Ohioans are the hardest working people I know and we can offer Ohioans some temporary relief without compromising on investing in our infrastructure. My out of touch billionaire opponent is telling us that rising costs are just a 'buzzword,' but Ohioans can always count on me to lower costs and put our families first."

Ramaswamy and his supporters criticized Acton for not providing specifics on how the state would make up the lost revenue from a gas tax holiday.

McColley called it "empty rhetoric."

Addie Bullock, Acton's campaign spokeswoman, said Wednesday that Acton "has been clear throughout her campaign; she will work with anyone, Republican or Democrat, to deliver for Ohioans. Dr. Acton was the first to propose a gas tax holiday because she knows Ohioans are struggling and need relief, and she is monitoring legislative proposals."

In response to Ramaswamy's proposal, Bullock said he "copies other people's calls to action instead of actually committing himself to tackling rising costs and making life more affordable for Ohioans."

Ohio House Speaker Matt Huffman, R-Lima, said: "The suggestion that this is a new idea that just came out this week, that apparently Amy Acton said we should do something about that. Well, she might be the 11 millionth person who's actually suggested this."

Bullock said this isn't the first time Ramaswamy has taken Acton's policy priorities to lower costs as he called for a plan addressing data centers a few days after Acton came out in support of a conditional moratorium.

Acton said Wednesday that the state Legislature should use next week's session to also pass her conditional moratorium on data centers.

Next week's session will be solely for a vote on the gas tax holiday, Huffman said.

Huffman said: "This is, I guess, an example of why Amy Acton would be a very, very poor governor. To put out a proposal which is conditional, what are the conditions? With other items in it, kind of throw it into the room and run out and say, 'Look, I'm doing something.' That's not how governors get things done." He said it is not a "serious proposal."

A two-thirds vote is needed by both chambers for the gas tax holiday to pass by emergency measure. In the House, that means 66 votes. Republicans have 64 members so it will need support from at least two Democrats presuming all Republicans back it.

Huffman said: "Democrats who vote against this bill are doing it at their peril."

Ramaswamy said he expects Democrats to vote for the bill.

If it fails to get two-thirds support, it would have to wait 90 days from the date of passage to take effect.

If it gets two-thirds support, it would take effect with the signature of Gov. Mike DeWine, a Republican. Huffman said he is hopeful that would occur in early October.

DeWine hasn't committed to signing the bill should it be approved by the Legislature.

Huffman said: "I'm not sure about why anybody would even think that this is a hard vote or that Gov. DeWine would reject it." Huffman said he hasn't discussed the gas tax holiday with the governor.

Ramaswamy said he has talked with DeWine, who is "open minded to how we're able to help Ohioans."

McColley added during his discussion with DeWine that the governor has "an open mind to it at the moment," and he was "encouraged" after leaving the conversation.

House Minority Leader Dani Isaacsohn, D-Cincinnati, said Ohioans "desperately need relief from the costs of the failed war in the Middle East. Vivek Ramaswamy's knee-jerk response to Dr. Acton's plan has demonstrated no understanding of how the state government works, how the budget is structured or how taxpayer dollars should be spent."

The gas tax holiday, Isaacsohn said, could be paid with the $600 million the Republican-controlled Legislature gave Cleveland Browns owner Jimmy Haslam for a new stadium, and ODOT "does not have surplus funding."

Starting at /week.