Kentucky Association of Counties

KACo Logo

Kentucky Association of Counties

Services

County Champion

SPOTLIGHT

Gov. Beshear’s gas tax freeze takes effect July 1

On June 2, Gov. Andy Beshear’s administration filed an emergency regulation to freeze the state gas tax and to prevent a 2-cent increase per gallon that would have taken effect July 1.

The state gas tax is set by statute. The current rate of 26 cents was set to increase under a trigger, resulting in the 2-cent per gallon increase.

The emergency regulation says that the Department of Revenue anticipates the freeze of the state gas tax will be necessary until mid-January 2023, when the General Assembly will convene for its 2023 Regular Session.

The sole source of funding for county road aid is the motor fuels tax.

According to the Department of Rural and Municipal Aid, the freeze will result in an estimated decrease of $5.1 million in budgeted County Road Aid for fiscal year 2023 if the freeze continues through mid-January 2023. The impact could be more significant if the freeze is extended beyond January 2023.

Counties own and maintain half of the road miles and over a third of the bridges in the state. In many rural counties, closer to two-thirds of road miles are maintained by the county.

More County News