Motor Fuels Tax Rate To Decline By 1.5 Cents Per Gallon

Kentucky’s “gas tax” on sales of gasoline, diesel and ethanol motor fuels will decrease by 1.5 cents per gallon on New Year’s Day, reflecting a drop in the calculated average wholesale fuel price.

According to the Kentucky Transportation Cabinet, the decrease would result in a loss to the Kentucky Road Fund of about $45 million on an annualized basis.

The tax on motor fuels is a classic user fee, paid by those who use public highways and bridges. There also is a federal tax of 18.4 cents per gallon of gasoline.