Kentucky motor fuel tax rate set to drop on January 1st
Kentucky's gas tax on the sale of gasoline, diesel and ethanol motor fuels is set to drop by 1.5 cents per gallon on New Year's Day which reflects a drop in the calculated average wholesale fuel price. The decrease would result in a loss to the Kentucky road fund of about 45 million annually. The tax on motor fuels is a classic user fee, paid by those who use public highways and bridges. It has three components: Variable excise tax, Supplemental user fee of 5 cents per gallon, underground storage tank cleanup fee of 1.4 cents per gallon. There is also a federal tax of 18.4 cents per gallon of gasoline.