Ohio Tax Reform Project
Modernize Ohio E-Check
Reduce the cost. Keep the standard. Fund Ohio smarter.
Ohio’s E-Check program applies to only seven counties, yet it costs the state roughly $13.2 million per year. The current system relies heavily on centralized testing stations, even though the report found that 99.75% of tests already use OBD-II scan technology. The Ohio Tax Reform Project believes Ohio should explore a smarter model: keep emissions compliance, but modernize how the test is delivered.
Core message
Ohio should not weaken emissions standards. Ohio should modernize how emissions testing is delivered.
What changes
If testing is already scan-based, Ohio should evaluate a decentralized network of authorized scan providers instead of relying on expensive centralized stations.
Counties requiring E-Check
7
Counties not requiring E-Check
81
Annual program cost
$13.2M
Vendor contract (annual)
$12.9M
Tests performed (2024)
861,290
OBD-II scan-based tests
99.75%
Full-service stations
23
Self-service kiosks
21
Estimated annual savings
$7.1M–$11.2M
Section 1
The Problem
Ohio’s current E-Check system is expensive and uneven.
Ohio E-Check currently applies in 7 counties:
That means 81 Ohio counties do not require E-Check, while residents in Northeast Ohio bear the inconvenience and compliance burden.
According to the policy report, Ohio’s E-Check program costs approximately $13.2 million annually, with a vendor contract valued at about $12.9 million per year. The program includes 23 full-service stations and 21 self-service kiosks.
Key question
If the test can be completed with scan-tool technology, why does Ohio still need such an expensive centralized station model?
Section 2
Modernize the Test — Not the Pollution Standard
The proposal is to modernize the testing system, not weaken standards.
Emissions standard
The Ohio Tax Reform Project is not proposing that Ohio weaken emissions standards.
The report found that in 2024, Ohio performed 861,290 E-Check tests, and 99.75% of testing relied on OBD-II scan technology. That means Ohio should study whether the state can replace much of the physical station infrastructure with a decentralized network of authorized scan providers, including:
- Auto parts stores
- Dealerships
- Certified repair shops
- Other approved providers
These providers could use state-certified scan tools to check the vehicle’s onboard diagnostic system and electronically submit results to the state.
Section 3
The Reform Proposal
A decentralized scan-based E-Check model.
Ohio should evaluate replacing the current centralized E-Check station system with a more convenient and lower-cost model. Under this proposal:
- Ohio keeps emissions compliance requirements where legally required.
- The state reduces or eliminates expensive centralized station infrastructure.
- Authorized providers perform OBD-II scan-based checks.
- Test results are submitted electronically to Ohio EPA / BMV systems.
- Residents receive a more convenient, lower-burden process.
- The state reduces program costs while maintaining accountability.
The goal is not to remove clean-air obligations. The goal is to remove unnecessary administrative cost.
Design principle
Modernize delivery using scan-based testing, electronic reporting, oversight, and verifiable compliance.
Section 4
Expected Savings
Potential annual savings (estimated by the report).
Potential annual savings
$7.1M–$11.2M
The current baseline cost is approximately $13.2 million annually.
The final savings would depend on how Ohio structures the replacement system, including:
- Whether providers receive a small stipend
- How much oversight the state keeps
- Technology and reporting system costs
- Fraud prevention and auditing costs
- Federal compliance requirements
The report estimates that a decentralized model could reduce this cost substantially while preserving the core testing requirement.
Section 5
How This Supports Property Tax Reform
This is a practical example of reviewing outdated systems, finding savings, and redirecting resources.
Important
E-Check reform will not, by itself, eliminate Ohio property taxes.
Before asking Ohioans for more money, the state should identify existing programs where costs can be reduced, modernized, or redirected. If Ohio can save millions by modernizing E-Check, those savings could become part of a broader tax reform strategy. Potential uses include:
- Supporting property tax relief
- Offsetting other local funding needs
- Reducing state program waste
- Creating a model for reviewing other outdated systems
- Showing taxpayers that Ohio is serious about funding reform
Find existing revenue. Reduce unnecessary costs. Fund Ohio smarter.
Section 6
Legal and Federal Review Required
Disclaimer
This proposal requires legal review, federal Clean Air Act compliance review, Ohio EPA review, and possible U.S. EPA approval through the State Implementation Plan process.
This proposal requires serious legal and regulatory review. Because E-Check is connected to federal Clean Air Act requirements and Ohio’s State Implementation Plan, Ohio may need approval from the U.S. EPA before making major changes. Any reform plan must answer these questions:
- Can Ohio maintain equivalent emissions compliance?
- Would a decentralized scan network satisfy federal requirements?
- Would Ohio need to amend its State Implementation Plan?
- How would fraud prevention and vehicle identity verification work?
- What role would Ohio EPA and the BMV continue to play?
- Can private providers be required to participate, or should participation be voluntary with state certification?
The Ohio Tax Reform Project supports reform that is lawful, practical, and verifiable.
Section 7
Recommended Next Steps
Ohio should begin with a formal review of the current E-Check system. Recommended action steps:
- Request updated program cost records.
- Request current vendor contracts and payment data.
- Review testing volume by county and station.
- Review kiosk usage and reliability data.
- Analyze whether OBD-II scan-based testing can be decentralized.
- Consult Ohio EPA, Ohio BMV, U.S. EPA, legislators, auto parts retailers, dealerships, and repair shops.
- Prepare a savings model using verified public records.
- Determine whether a State Implementation Plan amendment is required.
- Draft legislation authorizing a certified decentralized testing network.
- Protect residents from higher costs while preserving clean-air compliance.
Call to Action
Ohio Can Do Better
Ohio should not keep paying for outdated infrastructure if modern technology can deliver the same compliance outcome at lower cost. Modernize the test. Keep the standard. Reduce the burden.
Modernize the test. Keep the standard. Reduce the burden.