Tom Warne Report, 13 July 2012
Associated Press – July 11, 2012
COLUMBUS, Ohio – A lawsuit over the constitutionality of a tax on motor fuel sales that diverts $140 million a year away from road and bridge projects has made its way to the Ohio Supreme Court. The court listened to arguments by builders, contractors and paving companies on the side of an excavating company which filed the suit. The company claims that state law prohibits money raised from the sale of fuel to be used on anything other than road work.
The question is regarding a 2005 Ohio tax code rewrite that taxes a wide variety of business activity, not just a company’s revenue. The state claims the tax is not on the gasoline but on companies that make money selling fuel. The lawsuit does not include the 28-cent state gasoline tax, which directly distributes revenue to state, counties and local governments for transportation needs.