Rep. Dan Gasaway (R-Homer) represents the 28th GA House District. His district includes Stephens and Banks Counties and the southern end of Habersham.
This week the Georgia General Assembly passed an adjournment resolution that set the official session day calendar through Day 40, which is also known as Sine Die. The General Assembly is constitutionally required to complete its work within 40 session days, and this year’s schedule shows Day 40 on Thursday, April 2. April 2 is also Maundy Thursday, and I am hopeful we can stay on this schedule.
There is one issue that will be in discussion throughout the session, and that is House Bill 170 (HB 170) which deals with transportation funding. The House Transportation Committee held a hearing this week to discuss the specifics of the bill, which continue to be modified, and hear from concerned parties. As I mentioned in an earlier column, HB 170 proposes to do away with sales tax on motor fuel and move to a fixed excise tax on each gallon of motor fuel. Taxes collected on motor fuel would be used only for transportation purposes.
I heard from several groups concerned about HB 170 this week. County commissioners shared their concerns that HB 170 would take away their ability to collect local sales tax on motor fuel purchases. Currently, counties and cities collect from 1 to 3 pennies on each dollar spent on motor fuel. Most counties and cities use this revenue to maintain transportation infrastructure. The original version of HB 170 would have allowed county commissioners the option to collect a 3 cent excise tax. An additional 3 cent excise tax could have been collected in the counties if approved by the voters for a total of a 6 cents local excise tax. However, changes have been made, and the current version of HB 170 gives counties a 6 cent excise tax per gallon sold in their jurisdictions, to be spent only on transportation infrastructure. The Association of County Commissioners of Georgia (ACCG) who lobbies for Georgia’s county commissioners, is now supportive of the bill.
Another concerned group was local Boards of Education. They shared their concern that HB 170 would take away their ability to collect local sales tax on motor fuel purchases. Currently the Education Special Purpose Local Option Sales Tax (ESPLOST) collects 1 penny on each dollar spent on motor fuel. School boards use this revenue primarily for education-related construction projects. A few other counties in Georgia also have specific Local Option Sales Tax (LOST) which collects an additional penny on each dollar and is used for education funding. Under the current version of HB 170, sales tax would no longer be collected on motor fuel, and thus a portion of the revenue school systems rely on would cease to exist when current versions of ESPLOST expire. This financial hole created by HB 170 in school system’s budgets must be addressed. One possible revenue source being considered is an increased tax on cigarettes. Georgia’s tax on cigarettes is currently 48th lowest in the nation at $0.37 cents per pack. The national average is $1.23 per pack.
Anyone with questions about these issues or any other issues before the General Assembly may reach me at 404-656-0325 or [email protected].
