The state road fund, which is used to build and maintain public roads at the state and local level, has been negatively impacted by gas price reductions over the last several months. The state Transportation Cabinet estimated a loss of nearly $130 million to the road fund as the tax rate on average wholesale price of gasoline dropped more than four cents per gallon at the start of 2015. An additional loss in revenue is expected in April if a compromise isn’t reached.
This session, several bills important to Commerce Lexington have successfully made it through the process. This includes legislation to modernize Kentucky’s telecommunication law (HB 152), authorize $132.5 million in state bonds for the construction of a new research building for UK (HB 298), clarify statutes regulating the beer industry based on the three-tier system (HB 162) and allow a pari-mutuel tax exemption for Keeneland during the live Breeders' Cup races (HB 134).
Other bills supported by Commerce Lexington that appear unlikely to advance in the Senate in the final days include legislation creating a framework for public-private partnerships (P3) for all state agencies (HB 443) and a proposal to amend the Kentucky Constitution to allow local governments the ability to enact a voter-approved local option sales taxes, not to exceed one percent, for specific local projects (HB 1). Commerce Lexington will continue to monitor the process and will provide a detailed summary of the session in the May edition of Business Focus magazine.
FOR MORE INFORMATION:
If you have questions or would like more information about Commerce Lexington's public policy efforts, contact Andi Johnson at (859) 226-1614.