Kentucky HB 508: AN ACT relating to highway funding and making an appropriation therefor.

Bill Text

UNOFFICIAL COPY 21 RS BR 1759
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AN ACT relating to highway funding and making an appropriation therefor. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 138.220 is amended to read as follows: 3
(1) (a) An excise tax with an initial base[ at the] rate of twenty-four and six-tenths 4
of a cent ($0.246) per gallon[nine percent (9%) of the average wholesale 5
price rounded to the nearest one-tenth of one cent ($0.001)] shall be paid on 6
all gasoline and special fuel received in this state.[ The tax shall be paid on a 7
per gallon basis.] 8
(b) The excise tax under this section shall be[ average wholesale price shall be 9
determined and] adjusted annually as provided in Section 3 of this Act[KRS 10
138.228]. 11
(c) For the purposes of the allocations in KRS 177.320(1) and (2) and 177.365, 12
the amount calculated under this section and adjusted under Section 3 of this 13
Act[subsection] shall be reduced by the amount identified[calculated] in 14
subsection (2)[(3)] of this section. 15
(d) Except as provided by KRS Chapter 138, no other excise or license tax shall 16
be levied or assessed on gasoline or special fuel by the state or any political 17
subdivision of the state. 18
(e) The tax under this section[herein imposed] shall be paid by the dealer 19
receiving the gasoline or special fuel to the State Treasurer in the manner and 20
within the time specified in KRS 138.230 to 138.340 and all such tax may be 21
added to the selling price charged by the dealer or other person paying the tax 22
on gasoline or special fuel sold in this state. 23
(f) Except as provided by in subsection (4) of this section, nothing in this 24
section[herein contained] shall authorize or require the collection of the tax 25
upon any gasoline or special fuel after it has been once taxed under the 26
provisions of this section, unless such tax was refunded or credited. 27

UNOFFICIAL COPY 21 RS BR 1759
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(2) [(a) In addition to the excise tax provided in subsection (1) of this section, there is 1
hereby levied a supplemental highway user motor fuel tax to be paid in the same 2
manner and at the same time as the tax provided in subsection (1) of this section. 3
(b) The tax shall be: 4
1. Five cents ($0.05) per gallon on gasoline; and 5
2. Two cents ($0.02) per gallon on special fuel. 6
(c) The supplemental highway user motor fuel tax provided by this subsection and the 7
provisions of subsections (1) and (3) of this section shall constitute the tax on motor 8
fuels imposed by KRS 138.220. 9
(3)] Two and one-tenth cents ($0.021), of the tax collected under subsection (1) of this 10
section shall be excluded from the calculations in KRS 177.320(1) and (2) and 11
177.365. The funds identified in this subsection shall be deposited into the state 12
road fund. 13
(3)[(4)] At least twenty (20) days in advance of the first day of each fiscal year, 14
notification of: 15
(a) The adjusted motor fuel tax rate for the upcoming fiscal year[average 16
wholesale price] shall be given to all licensed dealers; and 17
(b) The adjusted electric and hybrid vehicle highway user fees established in 18
Section 4 of this Act shall be given to all county clerks[ at least twenty (20) 19
days in advance of July 1 of each calendar year]. 20
(4)[(5)] Dealers with a tax-paid gasoline or special fuel inventory at the time an 21
adjustment to the fuel tax rate under Section 3 of this Act[average wholesale price 22
] becomes effective[,] shall be subject to additional tax or appropriate tax credit to 23
reflect the increase or decrease in the fuel tax rate[average wholesale price ]for the 24
new year[quarter]. The department shall promulgate administrative regulations to 25
[properly] administer this provision. 26
Section 2. KRS 138.660 is amended to read as follows: 27

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(1) Every motor carrier, excluding charter bus operators registered pursuant to KRS 1
Chapter 281, shall pay a tax at the rate levied in KRS 138.220[(1) and (2)] on the 2
amount of gasoline and special fuels used in operations on the public highways of 3
this state. 4
(2) (a) In addition to the tax imposed in subsection (1) of this section, if the motor 5
carrier is a heavy equipment motor carrier as defined in KRS 138.655, he shall 6
pay a surtax on fuels used in operations on public highways of this state at 7
the initial base rates[rate] of: 8
1. Four and three-tenths cents ($0.043) per gallon on[two percent (2%) 9
of the average wholesale price as provided in subsection (1) of this 10
section, on the amount of] gasoline; and 11
2. Seven and two-tenths cents ($0.072) per gallon on[at the rate of four 12
and seven-tenths percent (4.7%) on the amount of] special fuels[ used in 13
operations on public highways of this state]. 14
(b) The surtax under this subsection shall be adjusted annually as provided in 15
Section 3 of this Act. 16
(3) Every motor ca