On the last night of the 2015 General Assembly, changes were made to the gas tax in the state of Kentucky. The tax rate is tied to the wholesale price of gasoline. With recent drops in gasoline prices, the tax rate has also dropped. On January 1 of this year, the tax rate dropped 4.3 cents to 27.6 cents per gallon. This rate is adjusted quarterly and the rate was scheduled to drop an additional 5.1 cents on April 1. One penny in the gas tax equates to approximately $30 million of revenue to the road fund. Of this, 48% comes back to counties and cities to maintain local roads.