Taxes at the gas pump would rise in Habersham County and statewide under a compromise version of HB 170 passed by both chambers of the Georgia Legislature last night.
The House and Senate agreed on a compromise designed to raise nearly $1 billion to maintain and expand Georgia’s road system. If Governor Nathan Deal signs the new law, you’ll pay more in state taxes for each gallon of gas you buy.
The new version of HB 170 passed last night includes:
- Excise Tax on Gasoline – 26 cents per gallon for gas and 29 cents for diesel
- Statewide Hotel/Motel Tax – $5.00 per night
- Electric Car Tax – $200 for private electric vehicles/$300 for commercial electric vehicles
The excise tax is about 10 cents more per gallon (depending on pump price) than the current mix of sales tax and excise tax you’re paying now. You probably won’t notice the change in gas taxes. It will be paid at the distributor level and passed on to you in the per-gallon price at the pump. The excise tax will be tied to the Consumer Price Index and will rise or fall annually based on the CPI.
There had been fear among local governments that the change in gas taxes would mean they no longer get their 1% local sales tax. The compromise version of HB 170 leaves local taxes alone. They can continue to collect 1% of the sale price up to $3.00 a gallon.
Habersham County’s state legislative delegation voted in favor of the tax changes.
The mix of new and different taxes combined with a reduction of tax loopholes for airlines and other large users will bring the state an estimated $900 million for roads, bridges, and other transportation needs. It is still not known if Governor Deal will approve this version of the gas tax because he wanted lawmakers to find at least a billion in new revenue. If he doesn’t think the new version of HB 170 raises enough state money, he could call lawmakers back for a special session this summer to pass different reforms.
In addition to the increase in tax money to the state, the new law also requires that the legislature create a “Joint Committee on Georgia Revenue Structure” to come up with a major overhaul of all state taxes in time for the 2016 session.
