Ohio Gov. Mike DeWine signed House Bill 519 into law Thursday, which approved a 90-day gas tax holiday. The “temporary reduction period" of gas prices will go into effect Sunday and run until Jan. 2, 2027.
The tax holiday, which was added to the legislation as an amendment, reduces the tax of both gasoline and diesel fuel from 38.5 cents per gallon of gasoline and 47 cents per gallon of diesel fuel to 0.01 cent per gallon.
Both Ohio gubernatorial candidates, Democrat Dr. Amy Acton and Republican Vivek Ramaswamy, announced their support for the gas tax reduction within the last week.
Acton claimed to be the first candidate in the race to propose a gas tax holiday, when she released a statement Sept. 21.
Shortly after her statement, Ramaswamy collaborated with Republican lawmakers to include the gas tax relief amendment to HB 519. Ramaswamy spoke at a press briefing in Columbus Sept. 23, touting his work with legislators and calling out Acton's lack of action.
“We're going to lead through action in the meantime,” Ramaswamy said. “The recent spike in diesel prices said we had to go now. We can’t wait for the election, and that’s exactly what I'm honored and pleased to be doing now, is working with our legislative leaders to lead through action, rather than through tweets and statements.”
HB 519 was primarily sponsored by Republican Rep. Andrea White, of the 36th District, but received votes from both sides of the party aisle.
Local representatives who voted to approve the legislation included Rep. Ty Moore, of the 95th District, Rep. Kevin Ritter, of the 94th District and Sen. Brian Chavez, of the 30th District.
On Wednesday, White expressed her satisfaction the bill passed the Ohio Legislature and is looking forward to helping alleviate the cost of living for all Ohioans, according to a press release.
“The pain that people are feeling at the pump and in the pocketbook is real, and it's not letting up,” White said in the press release. “There's a lot we can't control at the state level, but what we can do is suspend the gas tax of 38.5 cents a gallon and the diesel tax of 47 cents a gallon with an emergency clause to bring relief immediately.”
In addition to lowering taxes on gas, HB 519 also outlines licensed retail dealers and licensed retail motor fuel dealers are required to pass the tax break onto their customers. Failure to do so could result in a licensing inquiry by the Tax Commissioner which could then be referred to the Ohio Attorney General, according to the Ohio Legislative Service Commission.
This means gas stations are not permitted to continue selling gas at higher prices and keep the tax relief for themselves.
Chavez issued a statement Wednesday, detailing his support for the passing of the legislation.
According to the statement, the bill is projected to save Ohioans $725 million in fuel taxes at the gas pump. The bill appropriated $725 million from Ohio’s General Revenue fund to offset the monetary loss from the tax holiday.
Gas prices in recent months have increased dramatically, in part because of the U.S.’ ongoing war with Iran. Much of the crude oil in the U.S. passes through the Strait of Hormuz, which is currently blockaded, meaning less oil is passing through the major waterway, according to the Harvard Kennedy School.
The national average price of fuel on Thursday was $4.41, which is higher than Ohio’s average of $4.20, according to the American Automobile Association. Gas prices in Athens county were $4.51 Thursday, according to AAA.
