Kentucky House Bill 299, signed into law in March by Governor Beshear, protects Kentucky transportation revenue from extreme instability by setting a minimum gas tax rate. Kentucky gas tax rates typically fluctuate with the price of gasoline and the decline in gas prices has put transportation funds at risk. HB 266 sets the average wholesale price (AWP) of gasoline for the second quarter of 2015 “to be the statutory wholesale floor price of $2.177 per gallon.”
For the period April 1, 2015 through June 30, 2015, “the combined tax rate for the Kentucky variable motor fuels normal tax and ‘Supplemental Highway User Motor Fuel’ tax will decrease to 24.6 cents per gallon on gasoline and liquefied petroleum gas. The rate will decrease to 21.6 cents per gallon on special fuels.”
In addition, the AWP for the period July 1, 2015 through June 30, 2016 “shall remain at the statutory floor of $2.177.” Henceforth, “the AWP will only be subject to change on an annual basis beginning with the fiscal year starting July 1, 2016 forward.”
Please see the Kentucky Department of Revenue for additional details.
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