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Ohio House Bill 26 UPDATE

26 Feb 2017 17:58 | John Ginley

OHIO HOUSE BILL 26 Update

ORBAA has received some questions from membership regarding the Ohio Fiscal Year 2018-19 Budget, specifically a provision within the Transportation Budget, House Bill 26.

In a effort to begin tracking the revenue from aircraft fuel, and modifying the motor fuel tax to include compressed natural gas, the budget language removed the exemption for aircraft, effectively making it subject to the motor fuel tax. 

The department of taxation maintains that this was an interpretation error by the legislative services commission (and others reading HB 26), and it was not their intent to change the way aircraft fuel was taxed.  While the department believes an amendment is not necessary to make this clear, Chairman McColley is drafting an amendment for the sub-bill to eliminate any uncertainty. 

Procedurally, the bill must pass out of the House Committee and full House Chamber before the Senate Committee will take up the bill. The Senate will make any modifications it believes are needed. After the full Senate Chamber votes on the bill, any differences between the bills passed by the House and Senate will be worked out in Conference Committee. After the Conference Committee comes to agreement, the bill will be sent to Governor Kasich for his signature. The Governor has line item veto power to remove any provisions he is not supportive of. The budget must be signed into law by June 30, 2017. 

This process is repeated for each of the budget bills. The transportation budget moves through this process more quickly as it is not as controversial as the main operating budget. 

ORBAA will update its members as more information becomes available.


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