Gas Tax Increase Proposed By Bipartisan Effort

Drivers in Kentucky could pay an extra 10 cents per gallon at the pump while owners of hybrid and electric cars might hand over fees up to $150 per year as part of a bipartisan proposal designed to jump-start the state’s stagnant road fund. Kentucky has a backlog of more than $1 billion in road-paving projects and roughly 1,000 bridges that need to be repaired or replaced. In two years, $700 million in federal money for local public transportation systems will be at risk unless the state can find an extra $100 million to meet funding requirements.

To pay for those things, House bill 609 from Republican Representative Sal Santoro and Democratic Representative John Sims would raise the gas tax by 10 cents per gallon. That would generate an extra $300 million per year for roads. About half of that money would go to the road fund, which is controlled by the state legislature. The rest will be given to county and city governments based on a formula.

Kentucky’s proposal would impose a $50 annual fee for people who own hybrid cars, a $100 annual fee for people who own plug-in hybrid cars and a $150 annual fee for people who own fully electric cars. Other fees would go up, too. The cost of registering a vehicle with the county clerk would jump to $22 from $11.50, a fee that has not been changed since 1968.

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