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News Item #1365
[Commonwealth of Kentucky]
Legislature May Block Gas Tax Drop
Posted: 19-Feb-2009 10:40PM CST

A 1980 law ties a portion of Kentucky's gasoline tax to the average wholesale price of gasoline in the state. That price has dropped in recent months, and the gasoline tax is scheduled to drop 4 cents/gallon on April 1st; however, the state legislature is considering amending the law to prevent this drop. It is estimated that tax decrease would result in $120 million decline in gasoline tax revenue.

More information: Lexington Herald-Leader: Gas tax cut looks unlikely (Feb. 19, 2009) [Outside Link], Louisville Courier-Journal: Lawmakers may block drop in gas tax (Feb. 19, 2009) [Outside Link]

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Updated: 19-Feb-2009 10:40PM CST

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