Motor Fuels Tax Rate Set To Drop

Dec 20, 2013

Kentucky's tax on the sales of gasoline, diesel and ethanol fuels will drop by 1.5 cents per gallon on New Year's Day. 

State officials say the reduction reflects a drop in the calculated average wholesale fuel price.  The decrease would result in the loss of about $45 million to the Kentucky Road Fund on an annualized basis.  Kentucky Transportation Secretary Mike Hancock said that any loss of revenue is concerning.  The Road Fund supplies revenue to build, improve and maintain the state's roads and bridges.  The tax on motor fuels is paid by those who use public highways and bridges.  It has three components: the variable excise tax, a supplemental user fee of 5 cents per gallon and an underground storage tank cleanup fee of 1.4 cents per gallon.