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YOUNGSTOWN – The Ohio Legislature overwhelmingly passed a 90-day Ohio gas tax holiday that was pushed by Vivek Ramaswamy, the Republican gubernatorial candidate.
It was expected to be signed into law Thursday by Gov. Mike DeWine, a Republican.
The quickly written bill passed Wednesday in the Senate 26-5 and then in the House of Representatives 78-16 with Ramaswamy saying when he becomes governor, passing needed legislation will happen this fast.
Several Democrats, voting in favor of the proposal despite saying it is an election ploy to help Ramaswamy, said the average motorist will save about $3 a week, those who live out of state will take advantage of the gas holiday in Ohio and some of the savings would stay with the gas industry or retailers.
Without Democratic support, the gas tax holiday would have had to wait 90 days to take effect. With it, it can start as soon as DeWine signs it into law.
In a competitive race for governor with Democrat Amy Acton, Ramaswamy urged Republican leadership on Sept. 23 to call a special session, which was Wednesday, to vote on the gas tax holiday. That request came about 6 1/2 hours after Acton proposed it without providing details.
Initially, Ramaswamy's plan was to use Ohio Department of Transportation cash reserves to pay for the cost, estimated at $678 million. He first said the lost revenue would be replaced by an upfront appropriation from ODOT’s ending cash balance, then the General Revenue Fund and, if needed, the state's Rainy Day Fund.
When it was learned that ODOT's highway operating fund has just under $1.6 billion with no money that is not planned for future projects, the bills introduced Monday in the House and Senate increased the cost to $725 million with money coming from the General Revenue Fund. That fund is expected to have a $745 million surplus by next June.
The state's tax on regular gas is 38.5 cents a gallon and 47 cents on diesel. The 90-day gas holiday will reduce that tax to $0.0001, which Republican leaders say protects certain border counties from seeing unintended tax consequences due to neighboring states changing their own tax on fuel sold into Ohio if no other tax is levied.
Drivers will still pay the federal tax of 18.4 cents a gallon.
The Rainy Day Fund, which has a $3.7 billion surplus, isn't being touched.
After the vote, Ramaswamy said: "A lot has changed in seven days. A week ago, we had a clear plan. Today, that vision has been translated into reality.
"The truth is families are struggling with affordability,” he said. “Families need relief, and we had the opportunity this week to help those families even if it's just a little bit. A little bit means a lot when families are stretching themselves."
Ramaswamy said he was "disappointed" that 20 Democrats voted against the bill. One Republican senator also voted against the bill.
The measure was "a simple gas tax suspension that will help families. It shows their hypocrisy,” Ramaswamy said.
He said the speed at which the gas tax suspension passed is a sign of what will occur if he is elected Nov. 3.
During a Wednesday stop in Youngstown before the vote, David Pepper, her lieutenant governor running mate, said Acton's plan "was to propose relief and start the conversation. We're glad that happened."
He added that using the General Revenue Fund "makes more sense."
After the vote, Virginia Schaus, an Acton campaign spokesperson, said: "As the first candidate in this race to propose a gas tax holiday, Dr. Acton is glad the Statehouse has voted with bipartisan support to establish a gas tax holiday and provide Ohioans with much needed relief at the pump."
The 90-day gas holiday will take effect with DeWine's signature. The governor had objected to ODOT money being used for the gas holiday because there isn't a surplus in that fund.
Dan Tierney, DeWine's spokesman, said Wednesday that the governor will sign the bill into law as soon as Thursday as long as the Legislature gets it to his office.
When Ramaswamy and Republican legislative leaders - including Senate President Rob McColley, his lieutenant governor running mate - first announced the proposal on Sept. 23, AAA reported the average price of regular gas in Ohio at $4.4566 a gallon and $6.8167 a gallon for diesel fuel, which was a record high. The average price of a gallon of regular gas in Ohio on Wednesday was $4.2363 and $6.6794 for diesel.
Ramaswamy said the 90-day suspension would save the typical family with two vehicles about $165 - or about $80 a person - while a typical independent semi truck driver would save $1,800 over the 90 days.
But Democratic legislators, using language from Republicans in committee hearings, said the savings is more likely to be $3 a week per person. That would be less than $40 per person over the 90-day period.
REACTIONS
State Sen. Brian Chavez, R-Marietta, expressed support for the measure.
"Whether driving to work, school, or working around the farm, every dollar at the pump matters," Chavez said.
"I would tell you it was a chaotic scene yesterday," said state Rep. Kevin Ritter, R-Marietta. "I voted to remove the tax for 90 days."
"People in the 95th District are used to longer drives between destinations and they feel the strain of high gas prices," said Rep. Ty Moore, R-Caldwell. "I'm confident this bill will help Ohioans!"
Senate Minority Leader Nickie J. Antonio, D-Lakewood, said: "Families in Ohio have been feeling the impact of high costs for months, but Republicans decided to address this emergency when it was clear their unpopular gubernatorial candidate had low poll numbers. Creating an affordable Ohio starts with ending President Trump's reckless war with Iran. We could be doing so much more to address affordability, but the Republican majority failed to prioritize people over politics."
Staff Reporter Gwen Sour contributed to this story.