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Kentucky Motor Fuels Excise Rate Change, April 2015


 Kentucky takes steps to stop fuel tax revenue from spiraling to new depths.

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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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.