Ohio Economists Debate Future of Road Funding
The state is weighing a mileage-based fee as an alternative to the gasoline tax for funding local infrastructure.
Updated on Oct. 30, 2026 in Electric Vehicles
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Should states replace gasoline taxes with fees based on the number of miles driven?
Economists in Ohio are weighing the efficiency of a vehicle-miles-traveled fee as a potential alternative to the state's gasoline tax. As Ohio continues to pause its gas tax, policymakers are evaluating how to fund road infrastructure in a landscape of rising electric vehicle ownership.
Why it matters
Funding road maintenance has become a challenge as vehicle fuel efficiency increases and more drivers transition to electric models. Officials are now considering alternative funding structures to ensure reliable revenue for state infrastructure while addressing concerns over fairness and privacy.
A survey of 31 Ohio economists shows a slim majority favoring mileage-based fees over gasoline taxes. Currently, Ohio charges a $35 standard registration fee for gas cars, while hybrid, plug-in hybrid, and electric vehicle owners pay additional annual fees of $100, $150, and $200 respectively.
The players
Scioto Analysis
A research group that conducts policy analysis and economic surveys for public and private sector stakeholders.
The details
A vehicle-miles-traveled fee would shift road funding from fuel consumption to actual distance driven, theoretically capturing revenue from more efficient vehicles. Current Ohio policy relies on flat-rate registration surcharges for non-gasoline vehicles to account for their lack of gasoline tax contribution. Policymakers are examining these models against the backdrop of administrative complexity and the need for long-term, stable road-maintenance funding.
Timeline
Last week, Scioto Analysis conducted a survey regarding road funding models.
Ohio has currently paused its gasoline tax.
The Home Front
Ohio is navigating a transition in infrastructure funding as the traditional reliance on the gasoline tax becomes less viable. This shift reflects a national trend of states reconsidering how to sustainably finance road maintenance as vehicle technology evolves away from internal combustion engines.
If you own an electric or hybrid vehicle, remain aware that Ohio currently applies specific annual surcharges that differ from the standard registration fee for gas cars. Budgeting for these fixed annual costs is essential until any potential legislative changes to the state's road-funding model are finalized.
The takeaway
Ohio is actively searching for a replacement for its paused gasoline tax, with experts split on the effectiveness of a mileage-based fee. For now, keep track of your vehicle type and the corresponding annual registration surcharges when calculating your yearly household transportation costs.
Further reading
For more on how shifts in transportation impact your household, visit the Electric Vehicles section.
Source note: This article includes information reported by WOWO 1190 AM | 107.5 FM.
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Should states replace gasoline taxes with fees based on the number of miles driven?
