Fuel Taxes Get a Break—But Truckers Still Have Questions
Ohio lawmakers have approved a 90-day suspension of the state’s gasoline and diesel taxes as fuel prices continue to pressure truckers, farmers and other motorists. Gov. Mike DeWine signed the measure into law Thursday, with the suspension set to begin Sunday.
Ohio suspends fuel taxes for 90 days
AAA reported Ohio’s average diesel price at $6.66 per gallon, 27 cents above the national average. Regular gasoline was averaging $4.20 per gallon, 21 cents below the national average.
The temporary tax break followed two days of negotiations between the Ohio House and Senate. The measure applies to both gasoline and diesel fuel and is intended to provide short-term relief as operating costs rise.
DeWine, a Republican, signed the bill after lawmakers moved quickly to advance the proposal. Both major-party candidates for governor, Republican Vivek Ramaswamy and Democrat Amy Acton, also supported suspending the fuel taxes.
Interstate carriers face reporting questions
The suspension is expected to raise questions for interstate trucking companies that operate under the International Fuel Tax Agreement, or IFTA. Carriers must continue tracking miles and fuel purchases by jurisdiction for quarterly reporting, even when a state temporarily suspends or changes its fuel tax.
The treatment of tax-exempt or temporarily untaxed fuel can vary depending on state rules and the type of fuel purchased. Carriers operating through Ohio will need to follow the state’s reporting instructions during the suspension period.
Other states pursue temporary fuel relief
Ohio is among several states taking temporary steps to reduce the impact of high diesel prices. Georgia paused its fuel taxes, while Nebraska issued an executive order allowing refunds of state diesel taxes for certain crop and livestock transportation and temporarily relaxing restrictions involving tax-exempt diesel fuel.
Texas also issued temporary orders involving dyed diesel, commonly known as farm or off-road diesel. That fuel is normally exempt from taxes and restricted to off-road equipment, but the orders temporarily allowed its use in certain on-road agricultural and freight operations.
Fuel prices have placed particular pressure on independent contractors and small carriers, which often negotiate rates on a load-by-load basis and may have limited ability to recover sudden fuel increases. Industry groups have warned that prolonged elevated diesel prices could contribute to additional financial distress among smaller trucking operators.
