Fuel Tax Breaks Leave Truckers With Unanswered Questions

Ohio has enacted a 90-day suspension of the state’s gasoline and diesel fuel taxes as fuel prices continue to pressure truckers, farmers and other motorists. Gov. Mike DeWine signed the measure after lawmakers reached an agreement following two days of negotiations.

Ohio suspends fuel taxes for 90 days

The suspension begins Sunday and applies to both gasoline and diesel fuel. AAA reported Ohio’s average diesel price at $6.66 per gallon, 27 cents above the national average. Regular gasoline averaged $4.20 per gallon, or 21 cents below the national average.

State officials described the measure as temporary relief for consumers and businesses facing elevated fuel costs. The tax break had support from both candidates in Ohio’s gubernatorial race, Republican Vivek Ramaswamy and Democrat Amy Acton.

IFTA reporting questions remain

The suspension has raised questions about how fuel purchases and mileage will be handled under the International Fuel Tax Agreement. The available guidance states that qualifying fuel purchased without the state fuel tax would not be credited toward the applicable quarterly IFTA account. Carriers would still be required to report miles traveled in the state, even when no fuel tax was paid on those miles.

Carriers operating across state lines will need to follow applicable state reporting requirements during the temporary suspension. State rules and fuel-tax treatment may vary by jurisdiction.

Other states consider fuel-tax relief

Ohio’s action comes as other states consider similar measures. Georgia previously paused its fuel taxes, reducing the price of diesel in the state, while Illinois trucking groups urged Gov. JB Pritzker to consider suspending the state’s motor fuel sales tax.

Texas Gov. Greg Abbott also issued a statewide disaster proclamation intended to ease restrictions on the use of dyed diesel on public highways. The proclamation said the action would support agricultural and freight operations facing record fuel prices and would allow certain fuel, crop and timber loads to move at higher weights.

Federal dyed-diesel order under review

President Donald Trump separately signed an executive order addressing the use of red-dyed diesel and federal fuel-tax relief. Dyed diesel, commonly used for agricultural and off-road purposes, is generally not subject to the same taxes as highway fuel and is normally restricted from on-road use.

Under the order, the Treasury secretary must determine within five days whether relief is authorized under existing law. If approved, the federal excise tax deferral would remain in place through Dec. 31. The Agriculture Department was also directed to protect fuel supplies for farmers in high-demand areas, while states were encouraged to consider similar measures.

The order does not eliminate the need to comply with applicable state requirements. Fuel prices, tax suspensions and potential changes to dyed-diesel rules remain closely watched by independent truckers and other diesel-dependent businesses.