Governor Andy Beshear announced through a tweet last week that Kentucky’s gas tax has increased by two cents. The governor had previously signed an executive order in June to freeze the gas tax rate, preventing the 2-cent-per-gallon increase. This freeze, according to Beshear, saved Kentuckians $35.4 million. However, since the state legislature did not act to extend this freeze, the executive order expired, resulting in the gas tax increase.
In his tweet, Beshear expressed disappointment in the General Assembly’s failure to take action to continue the freeze, emphasizing that the gas tax hike is now in effect. He underscored the importance of providing more support to Kentucky families. The governor had previously warned legislative leaders through letters in January and February that action was required by the end of February to prevent the automatic increase in the gas tax.
In early June, Governor Andy Beshear signed an emergency regulation to freeze Kentucky’s gas tax rate at 26 cents per gallon. This action was taken to prevent the scheduled increase to 28 cents per gallon that was set to occur in July.
The scheduled increase was based on a requirement under state law, where the gas tax is adjusted in accordance with the average wholesale price of gas, following a specific formula. The freeze was intended to provide relief to Kentucky residents by avoiding the planned tax hike. Governor Andy Beshear
Governor Andy Beshear defended his action of freezing the gas tax rate last year, stating that it was intended to provide relief to Kentuckians facing rising gas prices and inflation during the summer. However, the governor’s method of implementing the freeze through an executive order drew criticism from Republican Senate President Robert Stivers. Stivers argued that the governor’s approach was “illegal,” asserting that it is not within the governor’s authority to selectively enforce regulations.
Stivers emphasized the importance of working collaboratively with the governor to achieve the shared goal of preventing additional increases to the gas tax but insisted that such actions should be carried out through legal and proper procedures, as determined by the legislature. The disagreement highlights the ongoing debate over the appropriate mechanisms for addressing tax-related measures in Kentucky.