AN ACT relating to transportation and declaring an emergency.

Amend KRS 138.220 to set a single excise tax on gasoline and special fuels; set initial base rate at 29.6 cents per gallon (cpg); subject tax to annual adjustment; eliminate references to taxation on the average wholesale price of gasoline and the supplemental tax on gasoline and special fuels; require annual notification to motor fuel dealers of the adjusted rate of the excise tax on gasoline and special fuels for each upcoming fiscal year; amend…

Introduced: January 14, 2026

Last action: March 31, 2026

Withdrawn

Read the full text Kentucky Legislature LegiScan

AI-generated — always verify with primary sources

Plain-language summary

Beta

This bill would overhaul how Kentucky funds its transportation system by replacing the current gasoline tax structure with a single excise tax starting at 29.6 cents per gallon, adjusted annually based on highway construction costs. It would also raise several fees, including vehicle registration fees, driver's license reinstatement fees, title fees, and traffic school fees, while creating a new multimodal transportation fund and adjusting how fuel tax revenue is shared between the state, counties, and cities. Who it may affect: drivers and vehicle owners, motor carriers and trucking companies, county clerks, and local governments that receive road funding.

Open official bill text (PDF)·Report a problem with the summary