KENTUCKY 'GAS TAX' WILL DECREASE BY 1.5 CENTS PER GALLON ON NEW YEAR'S DAY PDF Print
Monday, 30 December 2013 05:37

Kentucky’s “gas tax” on sales of gasoline, diesel and ethanol motor fuels will decrease by 1.5 cents per gallon on New Year’s Day, reflecting a drop in the calculated average wholesale fuel price.  The decrease would result in a loss to the Kentucky Road Fund of about $45 million on an annualized basis.

 

“The Road Fund is our source of revenue for building, improving and maintaining Kentucky roads and bridges, so any loss of revenue is concerning,” Kentucky Transportation Secretary Mike Hancock said Thursday.  The tax on motor fuels is a classic user fee, paid by those who use public highways and bridges

 

There also is a federal tax of 18.4 cents per gallon of gasoline.

 

The excise tax was enacted in 1920. But in the 1980s, the Kentucky Legislature provided for a variable excise tax as a percentage of average wholesale price (AWP) of gas and diesel.

 

By virtue of the October 2013 survey, the state variable excise tax will decline by 1.5 cents per gallon on Jan. 1, 2014 – to 24.4 cents per gallon from 25.9 cents. The last decrease in the excise tax was in October 2010.

 

 

 

Today is Christy Bunch Day!!  She celebrated a Birthday this past Wednesday!!

 

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