Ohio court hears challenge to tax on motor fuels

An excavating company alleges in a lawsuit reaching the court Wednesday that the state constitution bars money raised from the sale of fuel being used on anything but highway upkeep.

By ANDREW WELSH-HUGGINS
The Associated Press

7/11/2012

COLUMBUS, Ohio  — The Ohio Supreme Court is hearing arguments from builders, contractors and paving companies that a tax on motor fuel sales unconstitutionally diverts $140 million a year from road and bridge repair.

An excavating company alleges in a lawsuit reaching the court Wednesday that the state constitution bars money raised from the sale of fuel being used on anything but highway upkeep.

At issue is a 2005 rewrite of Ohio's tax code that taxes a wide variety of business activity, not just a company's revenue.

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The state argues that the tax is not on gasoline itself but on companies that make money selling fuel.

The debate does not involve the 28-cent state gasoline tax whose revenues are distributed automatically to the state, counties and local governments for road work.

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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