Kentucky Lawmakers Seek Motor Fuels Tax Hike

Proposal seeks a 1.5 cents a gallon increase from the current level.

March 13, 2014

FRANKFORT – A Kentucky House committee voted earlier this week to raise the state’s motor fuels tax, the Associated Press reports.

The measure would increase the tax at the pump by 1.5 cents a gallon from the current level. Without the increase, the tax is scheduled to decrease seven-tenths of a cent per gallon on April 1. It currently stands at 30.8 cents per gallon.

The bill is part of a larger revenue package, and it would adjust the formula for setting the tax on sales of gasoline, diesel and ethanol. The state’s gas tax is tied to the average wholesale price of motor fuels and readjusts every three months. 

Governor Steve Beshear first proposed the change in January as a means for helping pay for road and bridge work. The House Appropriations and Revenue Committee endorsed the change.

"I can't imagine ... how we can keep our roads in any kind condition if we cut that tax," said Rep. Robert Damron.

The bill goes to the full House for a vote before shifting to the Senate.

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