CNG vehicles

Economy
10:52 am
Thu June 6, 2013

Kentucky Lawmakers Might Consider Taxing Electric, CNG Powered Vehicles

Kentucky lawmakers are worried that electric and CNG powered vehicles will result in fewer gas tax dollars.

Kentucky lawmakers could soon take up the issue of taxing electric and compressed natural gas vehicles, in an effort to bolster a flagging road and bridge maintenance fund.

Kentucky House Transportation Committee Chairman Hubert Collins says alternatives are already being discussed in other states and at the federal level. Collins says with gas tax revenue in decline, Kentucky has to do something to make sure there’s adequate funding for transportation infrastructure.

“I think we see that U.P.S. bought something like 1,700 new vehicles which will be the compressed natural gas variety, and that will again take a toll (on Kentucky’s gas tax receipts)," said Rep. Collins.

Despite the concerns from lawmakers, Kentucky’s gasoline tax will rise 2.4 cents next month to a little over 32 cents a gallon—something that could generate $900 million in new revenue over the next fiscal year. The hike comes as a result of a tax increase state lawmakers wrote into law more than 30 years ago.