Kentucky's Gas Tax to Increase Tomorrow

Kentucky’s gas tax is set to increase tomorrow.

The gas tax can be adjusted quarterly, and goes up and down with the wholesale price of gasoline. Starting Tuesday, Kentucky’s gas tax goes up another penny-and-a-half per gallon – to 21-point-1 cents. Jill Midkiff with the Kentucky Finance Cabinet says the tax goes straight to motorists.

“It’s remitted at the wholesale level, by licensed dealers, and then the tax is passed through to the retailer and then passed on to the consumer,” she said.

Last year at this time, the excise tax went up one-point-three cents. The money from the gas tax goes into the state road fund. The formula that calculates the state’s gas tax hasn’t been changed since 1988.