Ohio's gas tax collections remain high
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Ohio's gas taxes still make up a significant share of our state tax revenue, but the state transportation department expects that will eventually change amid the rise in electric vehicles.
Why it matters: Gas taxes are used to pay for public roads and bridges, and other states are seeing revenue declines due to EVs and more fuel-efficient hybrids.
By the numbers: Ohio collected over $675 million in gas taxes in the first three months of 2024 alone, per U.S. Census Bureau data.
- The state has averaged $658 million in quarterly collections since the tax was last raised in 2019.
- The Q1 figure made up nearly 8% of the state's total tax revenue, meaning Ohio is more reliant on gas taxes than its similarly populated peers.
- Gas taxes make up less than 6% of state revenues in Pennsylvania, Illinois and Michigan.
The intrigue: The Ohio Department of Transportation (ODOT) projects that electric vehicle adoption will cost the state hundreds of millions of dollars in gas tax receipts over the coming decades.
- However, the department also expects the increase in electric vehicle registration fees to help offset that drop.
How it works: Ohio drivers pay a state tax of 38.5 cents per gallon and 47 cents for diesel.
- That's on top of federal 18.4-cent gas and 24.4-cent diesel taxes.
- Ohio's electric vehicle drivers pay annual registration fees instead of gas taxes: $100 for hybrids and $200 for plug-in EVs.
Between the lines: The gas tax covers the bulk (70%) of state roadway and bridge maintenance, and vehicle registration fees fund most of the rest, per ODOT.
The latest: Gov. Mike DeWine successfully raised the gas tax after taking office in 2019 and is floating another increase to pay for future projects like the Route 23 redesign, Cleveland.com reports.
Reality check: State lawmakers may not be on board with another hike.
- Members of both parties have proposed lowering the gas tax and electric vehicle registration fees in recent years, to no avail.