Ohio’s Gas Tax Is Running on Empty — Economists Split on What Replaces It
Your gas tank is about to become a policy debate. Ohio economists are split on whether the state’s motor-fuel tax — which pulled in roughly $2.7 billion last year — should be replaced with a per-mile driving fee as electric vehicles eat into gas-tax revenue.
The debate comes from a new Scioto Analysis survey of Ohio economists, released Friday. Sixteen said a vehicle-miles-traveled fee would be more efficient than the gas tax; eleven disagreed and four were uncertain.
The money at stake is real: Ohio loses an estimated $170 million a year as EVs and hybrids displace gas-powered cars. UToledo environmental economics professor Kevin Egan offered the twist Toledo drivers will talk about — Ohio’s $200 annual EV registration fee (versus $35 for a gas car) already exceeds what the average gas driver pays in state gas tax. In other words, EV drivers may already be paying more than their fair share, though Egan notes a per-mile fee would be fairer for high-mileage EV drivers — at the cost of tracking how far everyone drives.
Kent State’s Lucas Englehardt backed a miles fee for road funding but warned the gas tax quietly doubles as an emissions charge. UC’s David Brasington flagged privacy worries around GPS tracking, and Akron’s Ali Enami said vehicle weight ought to count too.
Context for your wallet: Ohio has paused its gas tax amid high pump prices — which we covered earlier this week — while hybrid drivers pay an extra $100 a year in registration fees, plug-in hybrids $150, and EVs $200.
For now it’s a debate, not a bill — but it’s the one to watch at registration-renewal time.
File photo via Wikimedia Commons — pumps shown are in Hong Kong, not Ohio.