The new Ohio gas tax increase, of 10.5 cents per gallon of gas and 19 cents per gallon of diesel, goes into affect on July 1, 2019. The Ohio tax rate will now be 38.5 cents a gallon on gas, and 47 cents a gallon on diesel.
The higher gas tax is expected to raise an additional $1 billion annually for road and bridge projects in Ohio. The new tax revenue will be split 55/45 with local communities; local communities will receive the larger share. In Vermilion, the tax increase is expected to generate an extra $270,000 for street maintenance the first full fiscal year.
According to Mayor Jim Forthofer, "The City of Vermilion will receive an estimated additional $270,000 per year from the tax in the first full fiscal year."
The City of Vermilion has $767,309 in the Street Maintenance & Repair Fund, and $50,000 in the State Highway Fund, for the fiscal year 2019.
According the mayor, "This amount is designated by the state for roads, repair, equipment, personnel, etc."