Oakwood considers increasing vehicle tax for streets

Oakwood is considering raising motor vehicle license fees $5 to generate thousands more for road maintenance and construction programs.

The city would be the latest area government to take advantage of new state provisions that allow what’s called a permissive tax.

City officials estimated that, if implemented, the new tax would bring in $45,000 per year for streets.

MORE: Vehicle license fee: How much goes to pay for roads in your Montgomery County community?

If adopted, Oakwood residents would pay a $5 permissive tax when they purchase or renew their motor vehicle license.

Several of Ohio’s 88 counties have already taken advantage of the $5 tax increments.

In 2018, Montgomery, Miami and Warren counties all approved a $5 permissive license plate tax for roads and bridges.

MORE: Ohio House OKs 10.7-cent gas tax hike

The current fee to register a vehicle in Ohio varies based on the type of vehicle being registered and where the customer resides, according to Lindsey Bohrer, spokeswoman with the Ohio Dept. of Public Safety.

“The license fees on a regular passenger vehicle are $34.50 and, depending on where the customer resides, the permissive tax fee can range from zero to $30,” Bohrer explained.

Oakwood Vice-Mayor Steve Byington hopes the public the ordinance, if passed, will be supported by the public because it will help with city streets.

“Hopefully this is one people will believe in,” he said.

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That money would be used to supplement local tax dollars for maintaining Oakwood’s streets, according to Byington.

“The amount of money provided through the vehicle registration fee was last increased in 2006,” he said. “This additional money will help us to continue to maintain our public roadways in a very first-class manor,” Byington said.

State lawmakers this year also raised fuel taxes as part of HB 62, the biennial transportation budget.

Money from Ohio’s newly increased tax on gasoline and diesel fuel won’t start coming in until October. The tax on gasoline will go up by 10.5 cents per gallon on July 1, and diesel fuel taxes will increase an additional 19 cents per gallon then.

MORE: How much money from new gas tax will local communities get for road fixes?

The change permanently boosts the state’s gasoline and diesel fuel tax from 28 cents per gallon to 38.5 cents per gallon for gasoline and to 47 cents per gallon for diesel fuel.

Oakwood city officials plan to discuss the issue of adding a $5 increment in its vehicle tax at their June meeting.

Montgomery County Engineer Paul Gruner said.

MORE: See what each community in the Dayton area will get from Ohio's increased gas tax

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