Lower Gas Prices Mean Lower Gas Taxes

Lower oil prices mean lower gas prices.  For Thanksgiving Day, according to AAA, gas prices could hit a 5-year-low. 

The low prices could have an affect on the roads we drive.

Gas prices on Winchester Road Wednesday night fell below $2.70 a gallon. 

"I’m loving it," said one driver.

"I’m pretty stoked," said another person getting gas.

AAA expects gas prices to continue to go down, and starting January, 1st they’ll get even lower.

On New Year’s day, Kentucky’s gas tax will fall four cents a gallon. 

"It’ll be the single largest decrease in one quarter that we have ever had," said Chuck Wolfe, Kentucky Transportation Cabinet Spokesperson.

Wolfe said the decrease means the Transportation Cabinet will lose about $130 million.  Wolfe said that would be $130 million less to repair, rebuild ,and maintain roads just in time for winter.

"It’s not possible right now to point to any particular type of work, or project and say it may be delayed, or it may be cancelled, but something will have to give," said Wolfe.

The Transportation Cabinet receives its funding from fees and taxes drivers pay not from income, property, or sales taxes. 

"The roads here are pretty bad right now, so I’d actually like to see some of those roads come together and make it a little easier on vehicles," said a Lexington driver.

The lower prices mean lower taxes.  The Department of Revenue figures out the tax rate quarterly based on the price of gas. 

Wolfe said the tax rate has gone down four of the last five quarters.  State law prevents the gas tax rising more than 10% in one quarter, but there is no floor.