Thursday, May 20, 1999
Patton seeks higher gasoline tax
BY PATRICK CROWLEY
The Cincinnati Enquirer
WILLIAMSTOWN — No sooner had the dust started to settle over his controversial casino proposals than Gov. Paul Patton risked another storm Wednesday by pressing for an increase in the state's gasoline tax.
In his last campaign stop before Tuesday's primary, Mr. Patton linked a possible increase in the tax with a movement in the legislature to eliminate about one-third of Kentucky's unpopular property tax on motor vehicles.
If the one-third of the motor vehicle tax that goes to the state is eliminated — a total of $70 million to $80 million a year — then “we need to make that money up,” Mr. Patton said in an interview after his speech.
“We ought to talk about that (motor vehicles) tax, making up that revenue and helping improve our roads” by increasing the gas tax, he said.
In the last few weeks, Mr. Patton has mentioned a dozen or more hotel-based casinos near interstate highways to raise tax funds, increase tourism and help the horse racing industry, which has been hurt by casinos in nearby states. The suggestion has met with widespread opposition, including from the state's Catholic bishops.
Kentucky has one of the highest motor vehicle property taxes in the country, but 45 states have higher gasoline taxes, he said. Kentucky's gas tax is 16.4 cents a gallon, which brings in about $400 million a year.
“That's an inequity, and we're trying to make taxes more equitable,” Mr. Patton said.
Legislators said Mr. Patton has discussed a possible 10-cents-a-gallon increase in the gas tax.
The money could be used to pump up the state road fund, which Transportation Cabinet officials estimate is underfunded by about $600 million. Additional money is needed to maintain and repair existing roads, officials have said.
Lawmakers, who must ap prove any increase in taxes, are poised in January to cut the motor vehicle tax by the one-third that goes to the state. The remaining money is returned to local governments and schools.
Motorists pay the tax, which is based on the value of a vehicle, every year when they renew their license tags.
House Majority Caucus Chairman Jim Callahan, D-Wilder, said lawmakers must be prudent in looking at the portion that goes back to communities.
“This issue will become very complex as we move forward, particularly now that we're talking about the gas tax,” Mr. Callahan said. “People have to understand that a dollar only stretches so far. We have to be prudent and not just do things that are politically popular when it comes to taxes.”
But raising taxes in Frankfort is certain to be a hard sell. The legislature has cut seven taxes totaling $350 million over the last few years.
Rep. Paul Marcotte said he understands the call for a higher gas tax given that the road fund is running low on money.
But like many other lawmakers, including several Republicans, Mr. Marcotte has signed a “no new taxes” pledge. “I can see that a gas tax increase could be justified, but I signed a pledge that I am bound by, and I will not able to support an increase,”he said.
Mr. Patton is not opposed in next week's primary. Peppy Martin of Hart County and David Williams of Columbia are seeking the GOP nomination in Tuesday's Republican primary.
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