road fund

Bipartisan Bill Would Boost Kentucky's Gas Tax By 10 Cents

Feb 28, 2018
Emil Moffatt

Drivers in Kentucky could pay an extra 10 cents per gallon at the pump while owners of hybrid and electric cars might hand over fees up to $150 per year as part of a bipartisan proposal designed to jump-start the state's stagnant road fund.

Kentucky has a backlog of more than $1 billion in road-paving projects and roughly 1,000 bridges that need to be repaired or replaced. And in two years, $700 million in federal money for local public transportation systems will be at risk unless the state can find an extra $100 million to meet funding requirements.

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After years of dwindling returns, revenue into Kentucky’s road fund was higher than expected during the fiscal year that ended on June 30.

But state officials say that won’t happen again this year because money gleaned from motor fuels is due to be flat and vehicle registration taxes aren’t expected to surpass projections again.

The road fund finances state road and bridge construction across Kentucky. The fund’s main sources of money are gas tax revenues, which are pegged to the price of gas, and the motor vehicle usage tax, which is paid when someone buys or transfers ownership of a car.