Ohio's Future Foundation (OHFF) is helping promote the right solutions to some of the major issues facing Ohio. OHFF believes we need to design sustainable solutions on issues that will improve the lives of Ohioans.
Gas prices had been on a steady rise since the beginning of the year but in the last 2 two weeks -- according to AAA -- they have jumped 23 cents a gallon to a Northeast Ohio average of $2.65. The spike marks a full 65 cents more than we were paying on Jan. 1. Industry analysts expect prices will rise to more than $3 per gallon before they level off or slightly fall sometime in the summer. Last week, Ohio legislators voted to raise the gas tax by 10.5 cents per gallon on fuel, and by 19 cents per gallon on diesel. The Governor signed the bill into law without any vetoes.
Ohioans will be immediately impacted every time they visit the gas pump. Rising prices at the pump for individuals, and an over 50% tax increase on diesel vehicles, will impact just about everything that you buy. It is logical to think that businesses are implementing the necessary steps to cover this gas hike.
“We’re going to have to pass on the bulk of the tax to our customers,” said John Lamb, owner of Cleveland Express Trucking.
And when that cost gets passed to retailers they will simply pass it along to consumers in the form of rising prices for everything from groceries to clothes, whether you are buying online or in the stores.
“It’s going to filter down to every person in Ohio, everything you buy is going to have to absorb a part of that tax,” Lamb said.
Cleveland Express Trucking has been in business since 1977, when Lamb started the company that now has 42 trucks and 125 trailers.
Fifty-five percent of the new taxes will go to the state, and 45 percent will go to local governments, but for the first 28-cents-a-gallon, 60 percent goes to the state and 40 percent goes to local governments.
When the state distributes gas taxes to cities, it considers how many vehicles are registered to the city. Those with more registered vehicles get more money, said Matt Bruning, a spokesman for the Ohio Department of Transportation reported to cleveland19.com.
Stayed tuned as OHFF will be covering transparency in the main operating budget.
Has this increased tax in Ohio affected you, your family or business? Please contact OHFF with your story.