Lawmakers in Ohio have passed legislation that will substantially increase the diesel fuel tax.
Starting on July 1, 2019, the diesel fuel tax in Ohio will increase by 19 cents to a total of 47 cents per gallon, according to the Columbus Dispatch. This increase gives Ohio the nation’s sixth highest diesel fuel tax rate.
The gasoline tax will also increase in the state of Ohio starting July 1. It will increase to 10.5 cents per gallon to a total of 38.5 cents per gallon.
The gas and diesel tax increase is expected to generate approximately $865 million per year to fund infrastructure improvements.
Communities Brace for Diesel Tax Increases After DeWine Signs Gas Tax Into Law https://t.co/sEdzT0zG3k
— TheOhioStar (@TheOhioStar) April 4, 2019
The Ohio Trucking Association supported the diesel tax increase as a more attractive alternative to other infrastructure funding options like tolling.
Groups like the Ohio Chamber of Commerce say that the substantial diesel fuel tax increase will bring with it higher prices for the state’s consumers:
“Diesel fuel powers our economy, because it’s what the trucks that deliver Ohio-made products to market run on. A 19 cent increase on diesel will move Ohio well past the state average of 30.2 cents of tax per gallon and leave us with the sixth highest tax rate on diesel fuel in the country. This does not make Ohio more competitive and will be damaging to Ohio’s economy and to our businesses. Increased fuel costs lead to higher costs at every point on the supply chain, and businesses will need to look for other costs to cut or raise the prices they charge their customers. Eventually, consumers will feel the pinch, too.”
Trucker Mitchell Stambaugh told WFMJ that he isn’t happy with the tax increase. “Truckers pay all kinds of taxes on everything it’s just getting ridiculous! You can’t hardly make any money. It’s not good. It’s only going to make the prices of commodities go up,” he said.