Wednesday, May 12, 2004

Gas tax rising in Kentucky



Record high gas prices not only hit Northern Kentucky drivers on Monday, but on Tuesday the state confirmed that its gas excise tax is going up.

The Kentucky Finance and Administration Cabinet said the gas tax would increase a penny to 11 cents a gallon on July 1. The increase will last at least three months and apply to both unleaded gas and diesel.

The tax is going up, at least temporarily, because the average wholesale price per gallon in April exceeded the $1.11 price trigger. The trigger was set by law in 1980; such a tax increase has only occurred once - in 1981.

Kentucky drivers also pay 6.4 cents a gallon in other fees, meaning that they will pay 17.4 cents a gallon in total fees and taxes for at least the third quarter of 2004.

- James Pilcher




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