COLUMBUS, Ohio – The Ohio House passed a two-year, $7.9 billion transportation budget Thursday afternoon that would increase gas and diesel taxes in coming years.

House Bill 62, which passed 71 to 27, now heads to the Ohio Senate, where numerous changes could be made to the measure. The legislation must pass the Ohio General Assembly by March 31.

On the floor of the House on Thursday afternoon, lawmakers voted to change the phase-in of the gas tax. Lawmakers originally intended to increase the gas tax over three years. Now it’ll be phased in over two years. The three-year phase-in of diesel taxes remains unchanged.

That request came from Gov. Mike DeWine’s administration, which successfully argued that for budgeting purposes, the details of the increase needed to change, said Ohio House Speaker Larry Holder, a Perry County Republican.

The transportation bill funds road construction for the Ohio Department of Transportation and local governments, directs federal transportation funds to the state’s 61 urban and rural transit agencies, funds the Ohio Department of Public Safety and makes policy changes.

Fuel tax increases

Ohio’s motor fuel tax is 28 cents a gallon for gas and diesel.

Under the current version of HB 62, the gas tax would increase by 10.7 cents a gallon:

7 cents beginning Oct. 1

3.7 cents beginning Oct. 1, 2020

The diesel tax would increase by 20 cents a gallon:

10 cents on Oct. 1

An additional 6 cents on Oct. 1, 2020

An additional 4 cents on Oct. 1, 2021.

The tax increases in HB 62 are lower than what DeWine had proposed -- 18 cents a gallon for gas and diesel, effective July 1, with yearly inflation increases pegged to the Consumer Price Index.

“Working with the administration, I understand that they would like more," Householder said. “But this is where we’re at.”

ODOT officials have said they’re facing a $1 billion funding gap beginning July 1. For local governments, the gap could be up to $1.5 billion.

DeWine, in a statement, said he believes the higher gas tax rate will better address the state’s transportation funding hole.

“I am very open to dialogue with the legislature on this issue, but I continue to believe that our proposal as introduced provides the money it takes to do the job right," he said. "I plan to work with the Senate to improve the House-passed bill and work toward a final agreement that funds vital maintenance, new construction, promotes jobs, makes our state more competitive, and enhances safety for the driving public.”

Attempted amendments

Some amendments failed on the House floor, including one by Rep. Craig Riedel, a Defiance Republican, that would have changed the prevailing wage law, which guarantees pay levels for tradespeople working on publicly funded construction projects, so fewer people would qualify for it.

The House didn’t seem to have an appetite for it, and a majority voted it down.

HB 62 directs $100 million a year in federal transportation funds to the state’s mass transit systems in the form of grants.

Rep. Kyle Koehler, a Springfield Republican, attempted to reduce that amount to $40 million – which was the request of DeWine—but it also failed.

Other increased funds in the bill

HB 62 would create yearly fees for alternative-fuel vehicles. Lawmakers said the vehicles contribute to wear and tear on the roads, yet since they pay no or less fuel taxes, they don’t pay to maintain them.

$200 for electric vehicles

$100 for hybrids

The bill contains a formula to convert compressed-natural gas to gallons, and owners of CNG cars would have to pay a fuel tax on that.

The fees would raise around $2 million a year.

More local funds

Local governments have bemoaned state funding cuts during the previous administration of Gov. John Kasich. In HB 62, they will see an increase of funds.

Lawmakers made some big changes in the transportation budget to help counties and municipalities.

Most dramatically, lawmakers changed the distribution ratio of the state gas tax. DeWine had wanted it broken down so that 60 percent would go to ODOT and 40 percent to local governments. HB 62 changes the ratio to 55 percent for ODOT and 45 percent for local governments.

Municipalities and townships could levy an additional $5 motor vehicle registration fee.

Rep. Stephanie Howse, a Cleveland Democrat, praised HB 62, after what she described as years of disinvestment in Ohio’s communities.

“We are getting to a place of real equity and I really think that we all should be applauded for that,” she said. “Because this isn’t just about investing in state departments, we are investing in Ohioans. Ohioans need this relief.”

Howse said 40 percent of the people in her district don’t own vehicles. She said the public transit investment will help.

Howse, who has butted heads with previous Republican legislative leadership because she didn’t think they were concerned about urban, black or low-income people, said it took courage for the House to vote to increase the gas tax.

“I thank you,” she said. “Honestly, from the bottom of my heart, I thank you for thinking of my people.”

Policy changes in the bill

Among transportation policy changes in the bill:

Municipalities that use traffic cameras would face new restrictions , including getting docked nearly dollar-for-dollar, in state funds by the amount they collect in traffic tickets from the cameras.

The bill would eliminate the requirement that vehicles have two license plates. Only a back plate would be required.

The state would regulate light-weight electric scooters, such as Bird and Lime, with requirements for operators’ ages, speeds and other provisions.