Introduced January 14, 2026
HB370
Log in to followAN 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…
Plain-language summary
This bill would overhaul how Kentucky funds its roads and transportation system by restructuring the state fuel tax, setting it at a starting rate of 29.6 cents per gallon with annual adjustments tied to a national construction cost index. It would also raise a range of fees that Kentuckians pay for vehicle registrations, titles, driver's licenses, and traffic school, while creating a new multimodal transportation fund and adjusting how fuel tax revenue is shared with 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.
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Legislative History
Primary Sponsor
Tom Smith
Representative · House District 086
Co-sponsors (1)
Richard White
Representative · House District 099
Bill Text Versions
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