Bill Summary – FastDemocracy

OHIO LEGISLATIVE SERVICE COMMISSION
                                              Office of Research                               Legislative Budget
         www.lsc.ohio.gov                       and Drafting                                         Office
                             S.B. 48                                Bill Analysis
                  135th   General Assembly
                                                                      Click here for S.B. 48’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. S. Huffman
Effective date:
Zachary P. Bowerman, Attorney
                                                         SUMMARY
                     Reduces the per-gallon rates of the motor fuel excise tax and the motor fuel use tax on
                          all motor fuel other than gasoline to 38.5¢, the current gasoline rate, starting on January
                          1, 2024.
                                                DETAILED ANALYSIS
Motor fuel excise tax rate
       The bill reduces the motor fuel excise tax rate from 47¢ per gallon for all types of motor
fuel other than gasoline, including diesel and compressed natural gas, to 38.5¢ per gallon,
matching the existing rate for gasoline under continuing law. The rate reduction begins to apply
on January 1, 2024.1
        Before July 1, 2019, the motor fuel excise tax rate was 28¢ per gallon. The 133rd General
Assembly’s biennial transportation budget (H.B. 62) increased the tax rate and allocated
revenue derived from the increase (i.e., the portion of the rate above 28¢ per gallon) differently
from collections from the initial 28¢ per gallon. Under continuing law, approximately 65% of
revenue from the initial 28¢ per gallon rate is allocated to the state for transportation
purposes, while the remainder is allocated to local governments for transportation projects. In
contrast, 55% of the revenue from the portion of the rate above 28¢ per gallon is allocated to
the state and the remainder to local governments.
      All motor fuel tax collections under the bill are allocated in the same manner. The initial
28¢ per gallon is allocated in the same manner as all motor fuel tax was before H.B. 62, i.e.,
1                 R.C. 5735.05; Section 3.
                                                                                                             February 27, 2023
Office of Research and Drafting           LSC                        Legislative Budget Office
approximately 65% to state projects and 35% to local governments, and, of the revenue in
excess of 28¢ per gallon, 55% is allocated to the state and 45% to local governments.
                                      HISTORY
                             Action                                 Date
Introduced                                          02-07-23
ANSB0048IN-135/tl
P a g e |2                                                                            S.B. 48
                                                                               As Introduced