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MOTOR FUELS TAX
Kentucky's motor fuels tax rate to drop by 1.5 cents per gallon on New Year's Day
Reported by: Associated Press
Reported: Friday, December 20, 2013 4:01 AM EST
Kentucky's tax on the sales of gasoline, diesel and ethanol fuels will drop by 1.5 cents per gallon on New Year's Day.
The decrease would result in the loss of about $45 million to the Kentucky Road Fund on an annualized basis.
Kentucky Transportation Secretary Mike Hancock said Thursday that any loss of revenue is concerning.
The Road Fund supplies revenue to build, improve and maintain the state's roads and bridges.
The tax on motor fuels is paid by those who use public highways and bridges. It has three components — the variable excise tax, a supplemental user fee of 5 cents per gallon and an underground storage tank cleanup fee of 1.4 cents per gallon.