WKYT - Your Town - Headlines

State gas tax increasing to 32.3 cents a gallon


MGN Online

FRANKFORT, Ky. (AP) - Kentucky's gasoline tax will automatically rise by 2.4 cents next month to 32.3 cents a gallon.

Lawmakers were briefed on the increase Tuesday in a meeting of the Interim Joint Transportation Committee.

Under Kentucky law, the gasoline tax is subject to periodic increases. That's based on a formula that ties the state's gasoline tax to wholesale prices.

Kentucky surveys wholesale gasoline prices every three months, and changes in the tax rate show up at the pumps three months later. That's meant a consistent string of increases over at least the past five years.

Lawmakers implemented the current system in 1980 amid concerns that rising gasoline prices would cause people to purchase less fuel, which would mean less revenue for highway maintenance and construction.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 210138761 - wkyt.com/a?a=210138761
Gray Television, Inc.