Kentucky gas tax increasing to 32.3 cents a gallon

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Associated Press

FRANKFORT, Ky. (AP) - Kentucky's gasoline tax will automatically rise by 2.4 cents next month to 32.3 cents a gallon.
   
Lawmakers were briefed on the increase Tuesday in a meeting of the Interim Joint Transportation Committee.
   
Under Kentucky law, the gasoline tax is subject to periodic increases. That's based on a formula that ties the state's gasoline tax to wholesale prices.
   
Kentucky surveys wholesale gasoline prices every three months, and changes in the tax rate show up at the pumps three months later. That's meant a consistent string of increases over at least the past five years.
   
Lawmakers implemented the current system in 1980 amid concerns that rising gasoline prices would cause people to purchase less fuel, which would mean less revenue for highway maintenance and construction.

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