FOR Ohio Update--March 5, 2019
House Finance Committee introduces substitute transportation budget bill
The House Finance Committee offered their transportation budget proposal this evening. To review the comparison document between the House & Governor's version click HB 62 comparison doc.
Highlights of major changes include:
- Reduced gas tax increase from 18 cents to 10.7 cents per gallon beginning October 1st to be phased in over 3 years (5 cents, 3 cents, 2.7 cents by 2021)
- Increase tax on diesel fuel by 20 cents to 48 cents per gallon beginning October 1st to be phased in over 3 years (10 cents, 6 cents, 4 cents by 2021)
- There is no indexing but the creation of a study committee to report ODOT’s needs by October
- Increased funding for public transit to $70 million per year in flex funding
- $200 registration fee on electric vehicles, $100 on hybrid vehicles
- Allow for $5 permissive county license tag fee (max $30)
- Repeal the front license plate requirement
It is anticipated that the motor fuel increases when fully implemented will generate $872 million annually. Prior estimates on electric/hybrid fuel registration fees was around $2.5 million. The House Finance Committee plans to vote the bill out tomorrow evening with a full House vote on Thursday.