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Ohio lawmakers will return to Columbus Sept. 30 to consider a 90-day suspension of the state’s gasoline and diesel taxes. The proposal would temporarily eliminate Ohio’s 38.5-cent gasoline tax and 47-cent diesel tax, potentially reducing state revenue by $640 million to $700 million. Lawmakers are debating how to replace the lost transportation funding, while Gov. Mike DeWine has criticized the idea of using ODOT money to cover the shortfall. Both gubernatorial candidates, Vivek Ramaswamy and Amy Acton, have called for a temporary gas tax holiday.
Ohio lawmakers will return to Columbus Sept. 30 to consider a 90-day suspension of the state’s gasoline and diesel taxes as fuel prices remain elevated.
The proposed gas tax holiday would temporarily eliminate Ohio’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax.
The measure comes just weeks before the Nov. 3 election and after both major-party candidates for governor called for a temporary suspension of the tax.
Ohio lawmakers prepare for special session
House Speaker Matt Huffman, R-Lima, and Senate President Rob McColley announced that lawmakers would return from recess next Wednesday for the vote.
The legislation is still being drafted by the Ohio Legislative Service Commission. Republican lawmakers are pushing for the tax suspension to take effect immediately through an emergency clause.
That provision means the bill would need support from some Democrats to pass with the required vote threshold.
Huffman has urged Democrats to support the proposal, arguing that Ohioans should not have to pay the state fuel tax during the 90-day period.
The House is expected to vote on the measure Sept. 30, while the Senate is also expected to consider the legislation.
Gas tax holiday could reduce state revenue
A temporary suspension would come with a significant cost to the state.
State lawmakers have estimated that the 90-day holiday could reduce state revenue by roughly $640 million to $700 million. Much of the lost money would normally support transportation-related spending.
Ohio currently charges 38.5 cents per gallon on gasoline and 47 cents per gallon on diesel.
The proposal has therefore raised questions about how the state would replace the money that normally flows into transportation funds.
Ramaswamy has said the state can use existing funds and excess revenue to make up the difference. Ohio Chamber of Commerce President and CEO Steve Stivers has also backed the proposal after previously expressing concerns about suspending the gas tax.
Stivers said the plan should include a full and immediate replacement of transportation dollars.
DeWine questions using ODOT money
Gov. Mike DeWine has raised concerns about using money intended for the Ohio Department of Transportation to offset the revenue lost through a gas tax holiday.
DeWine called the idea of taking money from Ohio Department of Transportation (ODOT) to cover the tax suspension a “very, very bad idea.”
The dispute comes as state officials debate whether Ohio has enough available money to backfill the transportation revenue without affecting road and infrastructure projects.
The Ohio Office of Management and Budget has indicated that ODOT does not have a cash balance available in its current budget that could simply be redirected to cover the loss.
The funding question could become one of the central issues lawmakers face when they return to Columbus.
Ramaswamy and Acton both support a gas tax holiday
The proposed legislation comes as the two major-party candidates for Ohio governor have both called for a temporary gas tax suspension.
Republican nominee Vivek Ramaswamy announced support for a 90-day holiday this week. Democratic nominee Amy Acton had called for a gas tax holiday hours earlier.
Ramaswamy told lawmakers and business leaders that Ohioans are dealing with higher fuel costs through circumstances beyond their control.
The proposals come as gasoline and diesel prices have increased and global energy markets have faced additional pressure.
The timing has also made the issue part of the 2026 gubernatorial campaign, although the proposed tax holiday would be considered by the Legislature rather than decided directly by voters.
Next steps for the gas tax holiday
The Ohio House and Senate are expected to return Sept. 30 to consider the legislation.
Because the bill is designed to take effect immediately, lawmakers will need to meet the higher voting threshold required for an emergency measure.
The final legislation will also determine how Ohio plans to replace the transportation revenue lost during the 90-day suspension.
For Ohio drivers, the amount of any potential savings would depend on how quickly the tax suspension takes effect and how much fuel they purchase during the holiday.
The proposal remains subject to legislative action, so its final details could change before lawmakers vote.
FAQs
How much is Ohio’s gas tax?
Ohio currently charges 38.5 cents per gallon on gasoline and 47 cents per gallon on diesel. A 90-day holiday would temporarily suspend those state taxes.
Why is there a dispute over ODOT funding?
Transportation taxes provide funding for roads and other infrastructure. Gov. Mike DeWine has opposed using ODOT money to make up for the revenue lost during the proposed gas tax holiday.
How much would Ohio drivers save?
The maximum direct state-tax reduction would be 38.5 cents per gallon for gasoline and 47 cents per gallon for diesel. Actual savings would depend on how much fuel an individual buys during the holiday.
Why are lawmakers considering the gas tax holiday now?
The proposal comes as fuel prices have risen and global energy-market pressures have increased. Its timing also places the debate close to the Nov. 3 election.
