Hold on to your coin purse; gas prices are going up again. But this time, it's not the oil companies fueling the surge. It is Kentucky gas tax law.
Because gas prices hit their recent all time high, the tax is going up. Chuck Wolfe, spokesman for the Transportation Cabinet explains, "Under the law, the increase is triggered by the increase in the average wholesale price of motor fuel.”
Right now, the tax is 21 cents a gallon. Beginning July 1st, that goes up to 22.5 cents, which is a 1.5 cent increase. All that money goes into the Transportation Cabinet's road fund.
"That is what funds your highway construction, your highway repair, other improvements and bridge repairs", explains Wolfe.
Last year, the tax on gas funneled over $500 million dollars to the fund.
However, Wolfe adds, the Transportation Cabinet is not getting rich off this. "The road fund is not expected to meet its projected level for the fiscal year".
That basically means, even with the extra money, the transportation cabinet is doing what a lot of Kentuckians are doing; just struggling to make ends meet.