Bill to raise gas tax, vehicle fees introduced in Kentucky
(The Center Square) – A proposed increase in the Kentucky gas tax made it into the General Assembly just under the wire this week, drawing praise from the state’s chamber of commerce.
House Bill 561, sponsored by Rep. Sal Santoro, R-Florence, would raise the state’s gas tax by 10 cents a gallon, raise other vehicle fees and enact other fees to increase state revenues to fund highway and bridge projects.
Because of a winter storm that blanketed Kentucky last week, lawmakers extended the deadline to file bills in the current session to Tuesday. Santoro filed on the final day.
“Everyone in the commonwealth of Kentucky must understand we have a $500 million need,” Santoro recently said. “There’s only one way we can do this: make some changes through the legislation.”
The state’s chamber of commerce urged its passage.
“We applaud Chairman Santoro for his efforts in championing infrastructure investment for a fourth consecutive session,” the Kentucky Chamber said in a statement. “We strongly urge the General Assembly to pass House Bill 561 to continue our economic recovery and promote safety and better connectivity throughout our commonwealth. Our neighboring states have acted in recent years, and it is imperative to increase our commitment to transportation in 2021 to ensure Kentucky stays competitive.”
The bill proposes owners of electric vehicles would pay a registration fee of up to $200. Owners of fuel-efficient vehicles also would pay a higher registration fee. That cost would start at $5 for vehicles that get less than 20 miles to the gallon. That fee would increase $5 for every 5-miles-per-gallon segment, capping at $20 for owners of cars that get 30 or more miles to the gallon.
The standard $11 registration fee also would double, Santoro said, with that money going to the state’s road fund.
The representative said the gas tax needs to be considered a “user’s fee” for the roads and bridges that are used by thousands of cars and trucks daily. A penny increase in the gas tax would generate $30 million in tax funds.
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