A bill that would raise Kentucky’s gas tax has died for the second straight year. According to the release, the gas plan didn’t have the support it needed to pass.
House Bill 517 would’ve added 10 cents per gallon to state taxes on gasoline and other fuels, in addition to expanding fees on electric vehicles and plate renewals. According to estimates, it would’ve generated nearly $500 million a year in additional revenue.
In past years, Kentucky’s road fund is seeing less revenue. This partially due to more fuel-efficient vehicles and gas tax collections that are tied to wholesale prices.
Therefore, transportation officials say more money is needed to continue to build and maintain roads and repair aging ones.
This is the second year the bill has been proposed and died in the state legislature.