A proposed fix for Georgia’s transportation needs would take existing local taxes on motor fuels from local governments and give the revenues to the state. To say it’s surprising that this idea comes from Republican leaders is an understatement.
The proposal, House Bill
170, backed by House Speaker David Ralston, would shift about $500 million from
local governments, half the $1 billion that’s supposed to be raised by this
measure for infrastructure. To make up for lost revenues, local governments
would be allowed to levy up to six cents per gallon in excise taxes without a
referendum if the latest change is approved by a committee.
House Bill 170 would
replace the existing sales tax on fuel with a state excise tax of 29.2 cents
per gallon, indexed to the rate of inflation and higher fuel efficiency
vehicles. That’s a tax increase right off the bat since current gas taxes (both
sales and excise) totaled 26.53 cents per gallon as of Jan. 1 this year,
according to the American Petroleum Institute.
Currently, the taxes are
allocated this way: a 7.5 cents per gallon excise tax, a 4 percent state sales
tax and a local sales tax ranging from 3 to 4 percent in most counties. If
counties add 6 cents per gallon in excise taxes, that would come to a total of
35.2 cents per gallon compared to the current 26.53 cents.
And to think that
sponsors of HB 170 have said it would be “revenue neutral,” meaning it would
not raise taxes overall. That doesn’t even hold true for the state taxes, as
noted above.
On this one, Cobb Commission
Chairman Tim Lee got it right. He has said HB 170 not only hurts the county
government but “it really pokes the school system in the eye” by taking about
$18 million — “just takes it from them and doesn’t do anything to help them
out.” Lee opposes the bill, which he said is still in its infancy and is
expected to be modified significantly. He also zeroed in on a truism: “When the
legislators are in session, it’s the 40 most dangerous days of the year.”
The battle lines are
drawn on this proposal. Lined up behind the bill are Republican leaders,
highway contractors, the Georgia Chamber of Commerce and other business
interests. Mounting opposition comes from local officials across the state, the
Georgia Municipal Association, the Association of County Commissioners, tea
partiers and, no doubt, hosts of taxpaying motorists with the power of the
ballot.
At a meeting of Rome
business and industry leaders last week when GMA’s executive director talked
about the impact of the bill, John Bennett, Rome’s retired city manager, minced
no words about sponsors of HB 170. He said, “They don’t have the guts to raise
taxes down there so they take it away from the cities and the counties.”
No doubt, Georgia has
plenty of needs for maintaining and improving roads, bridges and other
infrastructure. But the sponsors of HB 170 would be well advised to scrap the
bill. Like an aging car battery on a cold winter morning, this one’s a
non-starter.
Source: Debbie Dooley, Tea Party Patriots
Leader, posted on New Republican Leadership for Principles above Politicians
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