Government Resources

Motor Vehicle Fuel Tax Revenue

The State of Ohio applies a tax rate of twenty-eight cent per gallon on motor vehicle fuel. Previously, this tax rate was a total amount derived from five distinct levies. Effective January 1st, 2018 and pursuant to H.B. 26; the five prior existing levies were consolidated into one levy. The single twenty-eight cent per gallon levy is allocated in specified fractions that correspond with the five prior distinct levies and thus the revenue from the levy is subject to five differing distribution formulas. 

The Ohio Department of Taxation makes monthly distributions to every county, municipality, and township. Payments are made directly to the counties and municipalities; while the townships are indirectly paid- the state sends the funds to the county and the county reimburses the townships accordingly. 

Prior to the monthly distribution, funds are set aside for the following specified purposes:

  • Highway Operating Fund – 2.0000% of the previous month’s net receipts
  • Waterways Safety Fund – 0.8750% of revenue  
  • Wildlife Boater Angler Fund – 0.1250% of revenue
  • Motor Fuel Tax Administration Fund – 0.2750% of revenue
  • Grade Crossing Fund – $100,000 monthly
  • Any crediting of funds to the Highway Operating Fund as prescribed in 5735.051

Of the remaining revenue:  

  • 5.2942% of 17/28ths is credited to the Highway Operating Fund and 94.7058% of 17/28ths is credited to the Gasoline Excise Tax Fund
  • 32.5000% of 2/28ths is credited to the Gasoline Excise Tax Fund and 67.5000% of 2/28ths is credited to the Highway Operating Fund
  • 13/16ths of 8/28ths is credited to the Highway Operating Fund and 3/16ths of 8/28ths is credited to the Gasoline Excise Tax Fund
  • Of the remaining 1/28ths, 100.0000% is credited to the Highway Operating Fund

Of the 94.7058% credited to the Gasoline Excise Tax Fund in (I) above, 93.1677% is distributed in accordance to 5735.051(A)(2)(a):

  • 6.7000% to the Local Transportation Improvement Program (LTIP)
  • Five cents multiplied by the number of gallons of motor fuel sold at stations operated by the Ohio Turnpike and Infrastructure Commission
  • After the LTIP and Turnpike amounts are calculated, the remaining balance is distributed as follows:
    • 10.7000% to municipal corporations less $745,875
    • 9.3000% to counties less $745,875
    • 5.0000% to townships less $263,250
    • The remainder of the balance is transferred to the Highway Operating Fund (a fixed dollar amount) or to the Highway Capital Improvement Bond Service Fund, where applicable

Of the 94.7058% credited to the Gasoline Excise Tax Fund in (I) above, 6.8323% is distributed in accordance to 5735.051(A)(2)(b) and the amounts credited to the Gasoline Excise Tax Fund in (II) above are distributed in the following manner:

  • 42.8600% to municipalities
  • 37.1400% to counties
  • 20.0000% to townships

Of the 3/16ths of 8/28ths credited to the Gasoline Excise Tax Fund in (III) above is distributed in the same manner as 5735.051(A)(2)(b) subject to deductions under divisions 5735.051(C)(3). Amounts are credited in the following manner:

  • 42.8600% to municipalities
  • 37.1400% to counties
  • 20.0000% to townships

Funds are distributed amongst townships in the manner required under 5735.27(A)(3).
The amounts are distributed in equal proportions, except the portion of revenue that is described under R.C. 5735.05(A)(3) that is partially allocated to provide funding for townships.  Each township shall receive the greater of the following two calculations:

  • The total statewide amount credited to townships under R.C. 5735.051(C)(2) divided by the number of townships in the state at the time of calculation
  • 70.0000% of the formula amount for that township. The ‘formula amount’ is that which would have been allocated to that township if 50.0000% of the amount credited to the township were based on the number of centerline miles and the remaining 50.0000% of that amount were allocated based on registered motor vehicles per township

1/3rd of the total difference between the amount required to make all the payments to townships is deducted from the revenue credited to counties, municipal corporations; and, the remaining 1/3rd is deducted from the Highway Operating Fund.