Tuesday, February 24, 2015

Transportation Bill HB 170 a $500 million Tax Increase

A public retreat by a sponsor of Georgia’s push for more transportation cash February 23, 2015 | Filed in: Georgia Legislature, Transportation.

 

Even as House Republican leaders scour their caucus for votes for H.B. 170, at least one of their number has drifted into the “no” column.

As our AJC colleague Aaron Gould Sheinin reported last week, the revised transportation bill didn’t land on Friday’s House calendar. That may have given opponents more time to regroup.

Today we got word from state Rep. David Stover, R-Palmetto, that he’s taking his name off the list of sponsors because it amounts to a “$500 million tax increase.”

House leaders are set to speak at an afternoon press conference. The topic will be tax reform, but they can expect some questions on this as well. From Stover’s Facebook post:

As it currently stands, it would be a $500 million tax increase and I cannot and will not support any such increase on the backs of our citizens. 6.1 billion gallons of gas and diesel are sold in Georgia each and every year. The increase would first, wipe out the state sales tax portion on fuel purchases, this is an offset. Second, it will move the total tax to $.292 / gallon on gasoline and $.33 / gallon on diesel fuel. This is only $.0108 / gallon more than what we are all paying right now at the pump. The problem is that the local portion of the gasoline tax will remain.

This amounts to $.0728 / gallon and that is the increase per gallon that each and every Georgian would be facing if this bill passes. I was told to put it into perspective, the increase amounts to about $86 per Georgia driver per year. This would not be an issue had we offset the tax burden on Georgian’s somewhere else. It may not be an issue had the budget included increased spending for transportation out of the general funds.

If we, as a legislature, are going to ask our fellow citizens to pay more at the pump, then the state should be happy to drop some of its pet projects and dedicate more funding from the general fund towards transportation. The budget being presented to us this week did not even bother to move the 4th penny from the sale of motor fuel over to transportation. I cannot, and will not, support this bill in good conscience.

Not surprisingly, Erick Erickson of Redstate.com has come out against H.B. 170 as well, with the words “massive” and “tax increase.”  From this afternoon’s post:

The Republicans are structuring the gas tax so that all the money raised at the pump will go to the state. Currently, cities get some, counties get some, and the state gets some. Under the pending plan, 100% of the money will go to the state. They’re considering changing that slightly.

But the net result will be the same. Every city and county in Georgia will be forced to raise new taxes to pay for roads and bridges. They’re operating the same way they are operating with RFRA. Makes sense considering they’re using the Chamber of Commerce play book on both.

With RFRA, they’ll gut it, then pass it and claim to have supported it all along.

With transportation, they’ll pass it knowing it will force massive new taxes, but claim they did not vote for a tax increase.

http://politics.blog.ajc.com/2015/02/23/a-public-retreat-by-a-sponsor-of-georgias-push-for-more-transportation-cash/

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