By Bryleigh Middleton
With crumbling pavement and shrinking road budgets across southeastern Kentucky, Tom O’Dell Smith, the Kentucky State Representative for the 86th District, representing Knox and part of Laurel counties, said a modest increase at the gas pump is no longer optional but necessary, arguing that decades of inflation and stagnant fuel tax revenue have left counties and local municipalities unable to properly maintain their roadways.
Smith filed a bill in the Kentucky House last week, HB 370, that would, among other things, change the current tax formula to a five-cent-per-year increase, capped in its second year.
During a breakdown of House Bill 370, Smith defended the proposed 5-cent-per-year fuel tax increase, citing inflation and stagnant revenue growth, and stated that current funding levels are no longer sufficient to maintain Kentucky’s roadways.
In addressing the proposed fuel tax, Smith stated the bill will add five cents per gallon each year, not a 5% annual increase. Smith shared that the 2% increase would, for example, see the cost of a gallon of gasoline go from $2.50 to $2.55 the first year, then $2.60 the following year, before being capped. Smith’s reasoning for the bill is based on his research, suggesting that over the past 15 years, Kentucky has only experienced a $10 million increase in revenue, while inflation has risen to well over 40%.
“15 years ago today, we would be spending 50% or less,” stated Smith, “so that just tells us that we’re not meeting the needs of our roads through the formula we’re currently using.”
Smith also shared that the confusion about whether the bill increases by 5% stems from a statutory requirement: the tax rate cannot increase or decrease by more than 5%.
Smith states that he is attempting to address a recurring issue with roads throughout Knox County that are in poor condition, stating, “I am for my district, and I can tell you that our roads are suffering.”
When asked how locals can feel reassured by the statement that the tax raise will be capped after two years, Smith simply states, “Because if it went up again, it’d have to be voted on again.”
Smith adds that once a bill is passed, that is where it caps, and his bill caps after the second year.
Smith added that this increase in funding would create opportunities to upgrade maintenance for the City of Barbourville and county roads alike. Smith also acknowledged that the tax would be fair, stating that while he would personally love to see a 0% increase, the raise would be fair and unbiased.
In considering what the bill has proved to benefit, Smith states that if there are no improvements to road conditions after the passing, it would be his responsibility as a lawmaker to question local governments, adding that it would be under their purview, considering they were allotted the money for the sole purpose of road repair.
“Responsibility would be on the local governments because we sent them the funds, and they have to spend it on roads,” stated Smith. “They have to show what they have done with the money.”
Lastly, Smith would share that the moment he felt this decision was unavoidable was when he noticed, in budget reviews over the last two years, that less money was making its way to local counties and cities.
“I kept saying ‘they’ll have to fix it sooner or later,’ because we’re not the only ones that are being depleted,” added Smith.
Smith addressed the fact that he is open to more ideas on the matter that would make this an easier process for all involved, even adding that he is open to one cent-a-year for 10 years, and he wishes he could allow the bill to be under local control, with the option to opt in and out for locals. However, Smith emphasizes that this is a fair and even law, with no one exempt. “If I lived in Lexington, Louisville, or any part of Northern Kentucky, roads wouldn’t be what I’m talking about,” Smith added, “I’m glad they’re blessed with reliable roads, I’m just trying to look after my area.”
House Bill 370 doesn’t just address fuel taxes. Other fees that have remained untouched for years, despite increasing operational costs, need adjusting as well. HB 370 would see increased fees such as motor vehicle registration fees, state registration fees, County Clerk fees, requests for driving history records, set pricing for vehicle titles, raise reinstatement fees for driver’s licenses and commercial driver’s licenses, and increase the state traffic school fee. Smith noted that the proposed fee changes could be adjusted as well.
Smith has agreed to a sit-down video interview with The Mountain Advocate in the coming days. When the interview is aired, it will be announced on the newspaper’s website at www.mountainadvocate.com and on social media.
