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Gas Tax Fund

Printed From: MiddletownUSA.com
Category: Middletown City Government
Forum Name: City Council
Forum Description: Discuss individual members and council as a legislative body.
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=4926
Printed Date: Nov 23 2024 at 3:51am


Topic: Gas Tax Fund
Posted By: Stanky
Subject: Gas Tax Fund
Date Posted: Dec 09 2012 at 7:01pm
Did anyone else see an article in the MJ paper the other day concerning an Ohio court ruling the a municipality can't spend the Auto & Gas fund on anything other than roads? When I later went to find the article online I couldn't.


Replies:
Posted By: Wots
Date Posted: Dec 09 2012 at 9:04pm
Not from MJ. Is this the one?
  http://www.ohio.com/news/politics/state/ohio-supreme-court-rejects-nonhighway-use-of-fuel-taxes-1.356502" rel="nofollow - http://www.ohio.com/news/politics/state/ohio-supreme-court-rejects-nonhighway-use-of-fuel-taxes-1.356502
 
Published: December 8, 2012 - 06:31 PM
Ohio Supreme Court rejects nonhighway use of fuel taxesDecember 08,2012 11:31 PM GMTAndrew Welsh-HugginsAssociated Press http://www.ohio.com/news/politics/state/ohio-supreme-court-rejects-nonhighway-use-of-fuel-taxes-1.356502#license-1.356502" rel="nofollow -

COLUMBUS: Taking money collected on gasoline sales by the state’s updated business tax and spending it on anything but highway-related programs is unconstitutional, the Ohio Supreme Court ruled Friday as it accepted arguments that the tax is wrongly diverting $140 million annually from fuel sales to nonroadwork accounts for schools and cities.

 


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Wots
Liberalism: Moochers Electing Looters to Steal from Producers.

Posted By: 409
Date Posted: Dec 09 2012 at 9:08pm
From the MJ: Sat  Dec 8
RULING
Ohio court limits use of fuel tax
Gas tax funds must be spent on highway-related programs.
ByAndrewWelsh-Huggins

Associated Press
COLUMBUS — Taking money collected on gasoline sales by the state’s updated business tax and spending it on anything but highway-related programs is unconstitutional, the Ohio Supreme Court ruled Friday as it accepted arguments that the tax is wrongly diverting $140 million annually from fuel sales to non-roadwork accounts for schools and cities.

Builders, contractors, construction companies and engineers had sued over the tax, claiming that Ohio voters have repeatedly rejected the notion of diverting taxes raised from fuel sales to non-road work.

The court said in a 6-1 decision that the Commercial Activity Tax can still be applied to companies that make money selling fuel, but it can’t be diverted into the state fund that pays for everything from schools to prisons to health care for the poor. The court came to a similar conclusion three years ago in a lawsuit brought by grocers over the tax’s application to grocery store food sales. However, that decision didn’t deal with how the tax proceeds could be spent.

The Ohio Constitution “explicitly prohibits the expenditure of revenue derived from excises on motor-vehicle fuel for any purpose other than highway purposes,” Justice Robert Cupp wrote for the majority.

The state can still collect the money but can’t spend it until the General Assembly passes a law adjusting what it can be constitutionally used for, Cupp added. The office of Gov. John Kasich, which must produce a balanced two-year budget early next year, is reviewing the decision, said spokesman Rob Nichols.

Groups opposed to the tax argued the Ohio constitution bars money raised from the sale of fuel from being used on anything but highway upkeep.

“The diversion of any of these excise taxes undermines the will of the people to preserve the Motor-Vehicle-Fuel-related excise tax base for public road repair and construction,” Anthony Ehler, an attorney representing both construction companies and county engineers whose budgets rely on fuel taxes, said in a March 20 court filing.

Posted By: VietVet
Date Posted: Dec 10 2012 at 5:59am
Nick Kidd has been reminding us (and the city gov. people in his run for office) of this for years. He has asked repeatedly where the money has gone without receiving an answer. The city leaders have some explaining to do as to why they were breaking the law all this time.......but they won't, as they believe they do not owe any explanations to the people who supplied the money.

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I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.


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