Where The Money Comes From
Road and Bridge projects are financed from the County’s share of income from fuel taxes, motor vehicle registration fees, and federal Highway fund. In 1925 a state gasoline tax was established at 2 cents per gallon. Over the years, this tax has gradually increases to 22 cents. Ohio’s 88 counties receive and equally divide 9 percent of the revenues generated by this tax, which amounted to about $1.2 million per county in 1995.
The state vehicle registration fee is the major source of income for the County Engineer, accounting for 50 percent of annual receipts. State-wide vehicle registration was first established in 1920. At this time, the fee was $8.00, $12.00, or $20.00 depending on the horsepower of the vehicle. Between 1920 and 1993, the fee became a flat $20.00. After administrative costs have been deducted, and the proportionate funds are distributed among other recipient agencies, the counties share the remaining 70 percent based on the number of vehicles they have registered.
Recently, the state legislature allowed local government to levy additional motor vehicle registration fees in increments of $5.00, up to a total of $20.00. In 1968, Montgomery County enacted an additional $5.00 fee, giving 75 percent of the revenue to municipalities and 25 percent to the County. In 1989, two more $5.00 fees were added with about 70 percent earmarked for County use. Currently, over 518,000 vehicles are registered in Montgomery County.
This means that every time you renew your driver’s license, pay for auto tags, and fill your car with gas, you are contributing to safe roads and bridges in Montgomery County.
