New Motor Fuel Receipts Tax in Ohio is a big win for MIRA
July 1, 2013 – When Governor John Kasich signed the new budget for Ohio on Sunday June 30, it included a provision that helps gas station retailers compete on a level playing field. <
The Commercial Activity Tax (CATax) applicable to gasoline has been replaced by a Motor Fuel Receipts Tax that will be collected only at the terminal loading “rack”.
MIRA, a trade association representing thousands of independent retailers worked diligently to amend the CATax. “We have repeatedly expressed concern when the ‘carved-out’ exemption from the CATax for petroleum sales included in the 2005 Ohio budget expired in 2007, resulting in a skewed competitive playing field for retailers,” said Ed Weglarz, Vice President of Petroleum for MIRA.
MIRA analyzed the economics of the inequity, its adverse effect on our members, and a suggested solution to the problem. Unbeknownst to MIRA an analysis was being developed by economists at the University of Cincinnati, and they came up with literally the same solution to the problem.
“Because if its ‘cascading’ effect, the CATax was unfair because it was applied between 1 and as many as 4 times on a gallon of fuel, creating an uncompetitive playing field for many retailers,” said Weglarz.
MIRA offered that the solution was a one-time application of the tax at the terminal loading “rack” at higher rate. The Terminal Loading Rack is the point at the end of the pipeline or at a refinery where the trucks that deliver fuel to gas stations are loaded. “This system will eliminate the inequalities that were inherent in the old system, while providing a more stable, reliable revenue source for the state,” said Welarz.
MIRA government relations staff and interested members participated with other entities in many hearings across the state of Ohio, met with elected leadership, and department employees while striving to make changes to the CATax system. These educational efforts proved to be very helpful in gaining support for our solution. Opposition expressed by entities that didn’t understand the solution to the problem was overcome when it was revealed that the proposal wasn’t providing a tax-break to gas stations, but merely leveling the playing field.
“We thank the many retailers who testified at hearings, contacted elected officials, and provided financial data for our calculations,” said Weglarz. “This successful effort, spanning six years, shows how an association catering to its members for more than 100 years can accomplish positive results.”
MEDIA INQUIRIES: email@example.com