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The Atlanta Journal-Constitution
Published on: 05/31/07
Gas prices hovering at near-record highs increase about 2 cents per gallon in Georgia today, and it may not be the last increase in the tax before summer ends.
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The state tax will go from 15.2 cents a gallon to 17.3 cents, according to the state Department of Revenue. That approaches the tax's July 2006 high of 17.7 cents a gallon since the collection system was revamped in 2004, according to DOR spokesman Charles Willey.
By law, the part of the gas tax that rises with inflation is usually adjusted just twice a year, in December and July. But because gas prices rose more than 25 percent in the interim, the tax will get bumped early, Willey said. Then the regular biannual adjustment will occur as planned in July, probably yet another rise, he said.
"This is not good news for consumers," said Gregg Laskoski, spokesman for Georgia's AAA Club South. "That's an understatement."
By AAA's calculation the highest national average gas price came May 24, at $3.22 for unleaded regular. In Georgia it was $3.11 on May 23.
Still, Laskoski said he saw the point of transportation agencies that say they need more tax, not less, to fund projects to relieve congestion.
"It's a persuasive argument," he said. He said AAA does not have a position on the issue.
The state Department of Transportation, which gets the lion's share of the gas tax to fund roads and bridges, isn't jumping for joy over the extra 2 cents, said spokesman David Spear. "That will be more than offset by the inflationary increases in the cost of our materials," like asphalt, he said. In spite of generally rising motor fuel tax collections, DOT is projecting a $7.7 billion shortfall in the projects it needs to build for its six-year plan, and it is cutting promised projects. DOT reaped $856 million in state motor fuel taxes through 10 months of its fiscal year, DOT Commissioner Harold Linnenkohl said. Willey pointed out that April's total gas tax collections were down compared to those during April 2006. It's just one month of data, but it's worth watching, he said.
Transportation funding advocates' big gripe is with the part of the gas tax that does not rise with inflation. That's all of the federal gas tax, which has been steady at 18.4 cents a gallon for years, and 7.5 cents per gallon of the state gas tax. The part of the state tax that's going up today is the part that does rise with inflation, the four percent excise tax. Three of those percents go to transportation projects, and the fourth percent goes to the state's general fund.
This is the third time since 2004 that the tax has undergone an interim change, showing the fluctuation in gas prices, Willey said. It went up in December 2005, and down in December 2006.
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Comments
By richtfan
Jun 2, 2007 5:20 PM | Link to this
there is a big difference in the cost of gas and its tax and the cost of anything else.
the government does absolutely nothing to warrant taking such a tax hike from consumers. they don't make anything, refine anything, grow anything. all they do is sit back and cash the checks. if you had anyone but the state government running the roadbuilding projects, it could be done for so much less, but no--we have to have the state involved in it.
that drives up the price of the project by double. anything that government does costs way the heck more than if done by private industry.
By bill epperson
Jun 2, 2007 10:04 AM | Link to this
Greed tax imposed in Grady county, let me explain. The state tax for gas in Florida is 31.9 cents per gallon, in Georgia it's 17.3, that's adifference of 14.6 cents per gallon difference. Being an past resident of Florida/Tallahassee, for years I drove across state line to buy my gas, because Georgia gas price was anywhere between 12 cents to 18 cents difference because of the difference in gas tax. Well guess what South Georgians gas is now the same price in Grady county (Cairo), as it is in Leon county (Tallahassee). What happened to the difference in tax spread? I'll tell you what it is, it's the new Greed tax imposed on us by the local gas distributor. Going right in his pocket. It's out and out blatant price gouging, and something or someone needs to do something about this serious price fixing.
By larry
Jun 2, 2007 8:36 AM | Link to this
The reason nobody wants mass transit or GRTA in their county is that it will bring the trashy criminals and gang bangers out into the suburbs.I hope they continue to raise the gas taxes to the point where these thugs can't afford to drive out to the countryside.I personally get tired of hearing their stereo systems while i sit at a stop light.What also amazes me is that they can afford awesome stereo systems and fancy tire and rim packages,but they can't afford to pay their child support for their 3 kids by 3 different women-I guess Michael Vick and Evander Holyfield would fit right in with these folks-ONLY IN AMERICA
By larry
Jun 2, 2007 8:35 AM | Link to this
The reason nobody wants mass transit or GRTA in their county is that it will bring the trashy criminals and gang bangers out into the suburbs.I hope they continue to raise the gas taxes to the point where these thugs can't afford to drive out to the countryside.I personally get tired of hearing their stereo systems while i sit at a stop light.What also amazes me is that they can afford awesome stereo systems and fancy tire and rim packages,but they can't afford to pay their child support for their 3 kids by 3 different women-I guess Michael Vick would fit right in with these folks-ONLY IN AMERICA
By BeReal
Jun 2, 2007 8:28 AM | Link to this
This isn't as big a deal as everyone is making out. Every tax we pay on the items we buy goes up as the price of the unit goes up (i.e. as your chicken biscuit goes from $1.50 to $2.00, the tax paid at 7% goes from .11 to .14) but we don't see a news story on that. The gas tax has two parts - a 7.5 cent per gallon excise tax that has not changed since the 1970s and a 4% sales tax that, for whatever reason, does not change with the price of gas like every other sales tax we pay but is recalculated every 6 months or so. So the .02 that was added on yesterday is no more a "tax increase" than the .03 that was added to the chicken biscuit in the example above. It's a ridiculous system considering the technology that we have today. They need to toss the excise tax and move to a straight sales tax on gas that changes as the price changes. That way we won't have to read "news" stories about non-issues like this and the DOT can stop whining about being under-funded. There, that's my 2 cents...
By Wayne
Jun 2, 2007 8:25 AM | Link to this
You know, not everyone drinks lousy tasting $4/cup starbucks coffee or buys bottle water. But one this is for sure: The politicians couldn't care less how high gas goes. All they are capable of doing is paying lip service to the problem. State & local politicians had a window of opportunity to address the transportation problem back in the 1970's, yet chose to ignore it. Since government is total inept and is not capable of solving problems of any sort, the time has come for all politicians to work for the citizens for no pay. I advocate the suspension of all politicians salaries until they can show they are going to solve problems and issues the citizens face daily without the luxury of raising taxes. If they can't show us they have the necessary problem solving skills, why should they be paid anything. For most of us, a poor job performance would result in termination. That is what we need to implement now with those in office.
By GAry
Jun 2, 2007 7:48 AM | Link to this
It's time to realize there are other means of transportation available. Our politicians are not willing to see this and therefore, we as consumers have no alternate means of transportation. GRTA buses are OK but do not begin to address the problem. It's that "not in my city/county" attitude that continues to hinder transportation alternatives that must change. Just look at what Republican Steve Davis did concerning the commuter rail situation. The increased tax should be used for anything other than paving another foot of highway. Gas is only going up. Wait till the economic giants like China and India really start consuming gas. Because we have no long term national or state/local plan, we the consumers will be paying for what our politicans won't do. When gas gets to $4.00 per gallon later this summer, I believe the majority of people will be forced to consider alternates. They will be coming up short.
By Joe
Jun 2, 2007 7:46 AM | Link to this
I wonder what Will Jones thinks of the added gas tax?
By Mark C.
Jun 2, 2007 7:02 AM | Link to this
Gasoline is cheaper than the milk, bottled water, coffee and wine that we consume. It's also cheaper here in Georgia than most of the country and most of the world. Stop whining and do something about it: get rid of your status symbol vehicle and buy a smaller, more fuel efficient one. We all have much more control than we're willing to acknowledge over how much we pay per mile to drive.
By BigJim
Jun 2, 2007 5:38 AM | Link to this
GOP completely controls the state. Vote out the Republicans.
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