10/01/2026

MCAO Update: Senate holds hearing on gas tax holiday

Senate Holds Hearing on Gas
Tax Holiday

Though not originally scheduled to convene this week, the House and Senate have been called back to vote on an emergency effort to pause enforcement of the state’s gas tax. Following calls from both gubernatorial candidates for a temporary halt to the gas tax, Republican legislative leaders embraced the idea and announced legislation and a commitment to have session this week to vote on the legislation.

Accordingly, the Senate General Government Committee held its first hearing on Senate Bill 475, an emergency measure to reduce the state’s gas and diesel excise tax to $0.01/gallon for 90 days on Wednesday afternoon. The House has introduced companion legislation as House Bill 1019.

Senate Bill 475, in part:

• Reduces the tax on gasoline and diesel fuel for a period of three months, from 38.5¢ per gallon for gasoline and 47¢ per gallon for diesel to 0.01¢ per gallon for either.
  • The reduction would begin on the third day after the bill’s effective date and would expire 90 days later.
  • The reduction also applies to the fuel use tax, which is levied on operators of commercial vehicles on the basis of distance traveled in each state.
• Prohibits a licensed retail dealer or licensed motor fuel dealer from selling motor fuel during the temporary reduction period without passing the full benefit of the reduced tax onto the consumer or other purchaser.
• Classifies a violation of the prohibition as a deceptive act or practice in connection with a consumer transaction in violation of the Consumer Sales Practices Act (CSPA), subject solely to enforcement by the Attorney General.
• Requires that retail dealers apply to the Tax Commissioner to receive payment for the net tax reduction for fuel bought before the reduction period but sold during the period.
• Requires that retail dealers pay the full rate of motor fuel tax on fuel bought during the reduction period but sold after the period expires.
• Requires that gas stations provide a receipt upon request that includes the tax applicable to gas or diesel fuel purchased.
• Appropriates $725 million from the GRF in FY 2027 to offset revenue losses from the rate reduction.
• Appropriates $1 million from the GRF in FY 2027 to pay $125 to each retail service station in Ohio.

Senators Jane Timken (R-Jackson Twp) and Michele Reynolds (R-Canal Winchester) provided sponsor testimony, attached here. The sponsors focused on the details of the bill and how it will function to lower gas prices. Democratic members of the committee, Senator Willis Blackshear (D-Dayton) and Bill DeMora (D-Columbus), pushed the sponsors on how this bill would actually bring relief and how it addresses the larger market concerns that are driving the increases in prices. The sponsors focused on the need for immediate relief to Ohio consumers.

Rick Cargagna from the Ohio Chamber of Commerce testified as a proponent. Tony Ehler on behalf of the Ohio Council of Retail Merchants, which represents gas station owners, and Michelle Holdgreve of the Ohio Contractors Association, which represents the highway and utility construction industry, testified as interested parties. Their testimonies are also attached. Carfagna offered support for the bill saying it helps businesses lower fuel costs while protecting infrastructure funding. Ehler focused on several logistical concerns that station owners have with the bill – such as technological hurdles to fulfill the requirement that they must provide an itemized receipt to all customers, particularly given the short time frame to make the changes. The contractors testified to reiterate that any bill must ensure that state and local transportation infrastructure programs remain fully funded.

Americans for Prosperity-Ohio, the County Engineers Association of Ohio, the Mid-Ohio Regional Planning Commission, AARP Ohio and the National Federation of Independent Business all provided written only testimony, which can be viewed here: https://www.ohiosenate.gov/committees/general-government/meetings/cmte_s_gen_govt_1_2026-09-29-0200_1461

A full video recording of the hearing can be accessed here: https://www.ohiochannel.org/programs/ohio-senate-general-government-committee-9-29-2026

The General Government Committee was scheduled for a second hearing on Senate Bill 475, Wednesday, September 30, at 10:30 am. The House Finance Committee was scheduled to take up House Bill 1019 that morning at 10 am. The Senate scheduled to meet for session on Wednesday at 1:30 pm and the House at 2:00 pm to vote on the eventual vehicle for this proposal.

Each bill continues an emergency clause. Both the emergency clause and the law as a whole must receive the affirmative vote of 2⁄3 of the members of each house – 66 votes in the House and 22 votes in the Senate. If the bill receives the requisite votes, it would take effect immediately upon passage and approval by the Governor.

We’ll be following this bill closely and will provide an update on Wednesday’s actions.

Maryellen K. Corbett
Attorney at Law
mcorbett@calfee.com
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614.621.0010 Fax
 
Calfee, Halter & Griswold LLP
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