Issue 7/8 of 1% of the Motor Fuel Tax is allocated to the Ohio Waterways Safety Fund. BAO wants to maintain this percentage and eventually increase the percentage. Status This is not an issue this year in the Transportation Budget bill, House Bill 68; there was no attempt to change the allocations of the gas tax. Background The Ohio Waterways Safety Fund is a model user-payer, user-benefit program. The Ohio Waterways Safety Fund is the only source of revenue for the Ohio Division of Watercraft. The Fund's money comes from three sources: (1) boat titling and registration fees; (2) Federal boating safety grants; and (3) the current allocation of Seven-eighths of one percent of Ohio's excise tax on gasoline. Each of these three revenue sources comes exclusively from taxes on boating - there are no general revenue moneys ever involved. From the Ohio Waterways Safety Fund, all Ohio programs for safe boating education, law enforcement, capital improvements and administration are funded. Prior to 1999, the Ohio Waterways Safety Fund was not receiving its fair share of the Ohio motor fuel tax because Ohio law had not been updated in nearly 40 years to reflect the growth of recreational boating in Ohio. In 1999, the Ohio General Assembly increased the allocation from one-half of one percent to three-fourths of one percent of the motor fuel excise tax, which was an increase of approximately $3 million per year. In 2001, the Ohio General Assembly again increased the allocation of the Ohio gasoline tax to the Ohio Waterways Safety Fund by 1/8th of 1%. This increase was included in the biennial transportation bill, House Bill 73, which was effective March 31, 2001.( ) This additional increase brought the allocation to 7/8th of 1%. The estimated increase should bring in approximately $1.75 million additional dollars per year. House Bill 73 also allocated 1/8 of 1% of the motor fuel tax monies to the Wildlife Boater Angler Fund. BAO was able in House Bill 94, the biennial budget bill, to have the language clarified that the Wildlife Boater Angler Fund was to be used for boating access construction, improvements, and maintenance on lakes on which the operation of gasoline-powered watercraft is permissible. In 2003, House Bill 87, the Transportation Budget bill, contained a six cents increase in the gasoline excise tax, 2 cents per gallon effective August 15, 2003, an additional 2 cents per gallon effective August 15, 2004, and an additional 2 cents per gallon effective August 15, 2005. The 7/8 of 1% allocated to the Ohio Waterways Safety Fund was left alone. BAO Position BAO did not seek an increase in the State gas tax or in the percentage of the gas tax that goes to the Ohio Waterways Safety Fund in 2003 nor in 2005. Action You Can Take Encourage your State Representative and State Senator to continue support for gas tax funding to the Ohio Waterways Safety Fund. Back to Current Issues Index

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