Ohio Diesel Tax Holiday Starts Oct. 4: What It Means for IFTA

What happened

The Ohio diesel tax is taking a break. Ohio Gov. Mike DeWine signed a fuel tax holiday on Thursday, Oct. 1.

It starts Sunday, Oct. 4. It lasts about 90 days, to around the new year.

During the holiday, Ohio's diesel tax goes from 47 cents a gallon to 1 cent. The gas tax goes from 38.5 cents to 1 cent. Land Line reports the fuel use tax is suspended too.

The state will cover the lost money, about $725 million, from its general fund. The law also says fuel sellers cannot just raise prices to keep the tax savings for themselves. Other fuels, like CNG and propane, are not part of it.

Michigan is looking at a similar idea for its 52.4-cent fuel tax. That one is only a proposal. It is not law yet.

What it means for owner-operators

If you run through Ohio, you may pay less at the pump there for the next three months. That is real money on a long haul. It also matters for owner-operators in Texas and every other state who cross Ohio on I-70, I-71 or I-80.

But here is the part people miss. The holiday does not change your IFTA (International Fuel Tax Agreement) duties. IFTA is the quarterly return that splits your fuel tax among the states you drive in.

Land Line says carriers should keep tracking and reporting the miles they drive and the fuel they buy in Ohio. The IFTA rate for Ohio will change in IFTA's quarterly rate updates. Your return will use the official rate. You do not guess it yourself.

Why does that matter? IFTA does not care only where you buy fuel. It cares where you burn it. If your Ohio miles or gallons are missing, your return will not balance. A return that does not balance can bring questions, a bill or an audit later.

So a cheaper fill-up in Ohio is good news. A sloppy log of those miles is not.

What to do next

• Keep every fuel receipt from Ohio, starting Oct. 4. Make sure each one shows the date, the place, the gallons and the price.
• Keep logging your Ohio miles by state line, the same as always. Your ELD or GPS records help here.
• Do not drop Ohio from your IFTA return because the tax is almost zero. The miles still count.
• Watch for the new Ohio rate in the quarterly IFTA rate table before you file.
• Remember the dates. The holiday starts Oct. 4 and runs about 90 days. Receipts from before Oct. 4 use the old rate.
• Not sure how IFTA fits with your other filings? Read our filing guide for owner-operators.
• New carrier? Check what comes first in the new entrant safety audit guide.