The Louisville Courier-Journal: Kentucky facing consequence of gas tax tied to price
media mention“Most states — 32 — levy a fixed-rate per-gallon tax no matter what the price of gas, according to the Institute on Taxation and Economic Policy, a tax watchdog group. But 15 states, including Kentucky, gauge it to the price per gallon, which makes it function more like a sales tax.
Florida and Massachusetts levy a slightly different version of the variable-rate tax, one that looks at broader inflation, the institute said. Maryland pegs gas-tax increases to the annual change in the consumer price index but doesn’t reduce the rate.”