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Posted: Wednesday, 26 March 2014 7:44AM

Senate sets up gas tax showdown

FRANKFORT, Ky. (AP) — Kentucky's Republican state Senate leaders rejected a gas tax increase of 1.5 cents per gallon on Tuesday.

The decision forces a showdown with the Democratic-controlled House over how to pay for roads.

Kentucky drivers pay a state tax of 30.8 cents for every gallon of gasoline they purchase. That tax is scheduled to drop to 30.1 cents per gallon on April 1.

House Democrats increased the tax to 32.3 cents per gallon. The change would give the state an extra $107 million during the next two years to spend on road construction.

Republican Senate President Robert Stivers said he did not think Kentuckians wanted to pay higher taxes. Democratic House Speaker Greg Stumbo said Republicans are just trying to improve profits for oil companies.

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Topics : Politics
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Locations : FrankfortKentucky
People : Greg StumboRobert Stivers
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