KY gas tax set to increase - News, Weather & Sports

KY gas tax set to increase

Steve Carter Steve Carter
State Rep. Jim Wayne State Rep. Jim Wayne

LOUISVILLE, KY (WAVE) - If you live in Kentucky prepare to pay more at the pump. The gas tax will increase to 2.4 cents a gallon. When you add federal and state gas taxes rates, Kentuckians will pay a little more than 50 cents on every gallon in taxes.

"It's par for the course," said Steve Carter, a Louisville cab driver. "Everything else goes up every day of your life. It seems like nothing surprises me anymore, as a cab driver, I'm just thankful to have a job."

Lawmakers considered the idea about five years ago when gas continued to rise, resulting in residents not driving as much and switching to more energy efficient cars.

As more people stopped filling up the tax revenue went down. Lawmakers built the equation where the gas tax would rise with the wholesale price of gasoline.

State Rep. Jim Wayne, (D-District 35, Louisville) said most people won't notice that much at the pump.

"With gas mileage reduced now in some cars, in most cars compared to even 10 years ago you're getting much better mileage in these newer cars, what that means is, there are fewer taxes coming in," said Wayne.

The increase will pump about $70 million into the transportation budget.

"I think the biggest problem we have to look at in the state is how do you properly fund transportation?" said Wayne. "I'm not just talking about highways, but also, bike lanes, public transportation and some of the infrastructure problems."

The 2.4 cent tax increase on a gallon of gas brings Kentucky's gas tax to 32.3 cents a gallon. The tax has risen almost 16 cents in the last decade.

The gas tax hike begins July 1.

Copyright 2013 WAVE News. All rights reserved.

Powered by Frankly