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Ohio court hears challenge to tax on gasoline

1:45 PM, Jul 11, 2012   |    comments
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COLUMBUS -- The Ohio Supreme Court has heard 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 that reached 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.

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.

ANDREW WELSH-HUGGINS
AP Legal Affairs Writer

The Associated Press

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