Lawmakers to OK gas tax break
The special session is expected to suspend gas taxes through Sept. 30.
09/07/05
By Diane Wagner, Rome News-Tribune Staff Writer
The chairman of the state transportation board voiced cautious support Tuesday for the monthlong suspension of Georgia’s gasoline tax.
“The governor recognized that the people and businesses of this state were hurting, and he stepped forward to offer some relief,” said David Doss, a Rome resident and former Floyd County commissioner. “While it’s a $75 million loss for the (Georgia Department of Transportation), we’ll have to shoulder our share of the burden.”
With gas prices topping $3 a gallon in the wake of Hurricane Katrina, Gov. Sonny Perdue suspended the state’s 7.5 cents per gallon excise tax and 4 percent sales tax on gasoline through Sept. 30. The Georgia General Assembly is meeting this week to ratify the move.
Doss confirmed the DOT ended the 2005 fiscal year in June with excess revenue and is expecting to net more than its budget in 2006. But he also noted that the state’s 25-year transportation plan is projected to be $16 billion short.
“We may have more revenue than we anticipated, but I don’t want to give anyone the illusion that we’re rolling in extra money,” he said. “We have far more demands than we have revenue to address.”
State Rep. Paul Smith, D-Rome, said he plans to vote for the temporary tax cut, but not without some concern about the future. Although sales-tax revenue increases as prices soar, he said, the state gas tax is prepaid by retailers at a projected price — currently set at $1.67 a gallon.
“The state hasn’t been getting tax on $3 a gallon,” he said. “They’ve been getting more in, but not nearly as much as indicated.”
The legislature is expected to ratify the gas tax suspension Saturday, along with a second measure that increases the mileage rate reimbursed to state employees who use their own vehicles on the job.
State Sen. Preston Smith, R-Rome, said there also is discussion about adding to the gas bill a hefty fine for retailers who price-gouge at the pump.
“One idea is a $5,000 fine for every vehicle that fills up at the inflated price,” he said. “And it could go up (before the session ends).”
Reimbursement for mileage to rise
Members of the Floyd County legislative delegation all said they support increasing the 28.5-cent-per-mile reimbursement rate for state employees. Plans are to tie it to the federal rate, which is at 40.5 cents now.
“That needed to be done a long time ago,” said state Rep. Bill Cummings, D-Rockmart. “State employees using their own cars on state business are going into debt.”
State Rep. Barbara Massey Reece, D-Menlo, co-sponsored a similar measure during the past legislative session, but the Democrat-backed bill never made it out of committee for a vote.
The increase is projected to cost $4.9 million, but the current rate is “antiquated” in light of the expense to drive and maintain a car, Sen. Smith said. His position was echoed by state Rep. Barry Loudermilk, R-Cassville.
“I’m inclined to support it not just for the sake of state employees, who I think are being underpaid, but for other workers whose businesses use the state rate,” Loudermilk said.
It will be Saturday before the bills are processed through both chambers, but the session is limited to the two issues Perdue cited when he convened the legislature.
Reece said she is disappointed that questions regarding the influx of Hurricane Katrina evacuees will not be addressed.
“We’re not just in a gas crisis. We’ve got a lot of things coming down the pike,” she said.
Displaced families will need schools, medical care and jobs, she said, and the legislature should be involved in planning for the coming year.
09/07/05
By Diane Wagner, Rome News-Tribune Staff Writer
The chairman of the state transportation board voiced cautious support Tuesday for the monthlong suspension of Georgia’s gasoline tax.
“The governor recognized that the people and businesses of this state were hurting, and he stepped forward to offer some relief,” said David Doss, a Rome resident and former Floyd County commissioner. “While it’s a $75 million loss for the (Georgia Department of Transportation), we’ll have to shoulder our share of the burden.”
With gas prices topping $3 a gallon in the wake of Hurricane Katrina, Gov. Sonny Perdue suspended the state’s 7.5 cents per gallon excise tax and 4 percent sales tax on gasoline through Sept. 30. The Georgia General Assembly is meeting this week to ratify the move.
Doss confirmed the DOT ended the 2005 fiscal year in June with excess revenue and is expecting to net more than its budget in 2006. But he also noted that the state’s 25-year transportation plan is projected to be $16 billion short.
“We may have more revenue than we anticipated, but I don’t want to give anyone the illusion that we’re rolling in extra money,” he said. “We have far more demands than we have revenue to address.”
State Rep. Paul Smith, D-Rome, said he plans to vote for the temporary tax cut, but not without some concern about the future. Although sales-tax revenue increases as prices soar, he said, the state gas tax is prepaid by retailers at a projected price — currently set at $1.67 a gallon.
“The state hasn’t been getting tax on $3 a gallon,” he said. “They’ve been getting more in, but not nearly as much as indicated.”
The legislature is expected to ratify the gas tax suspension Saturday, along with a second measure that increases the mileage rate reimbursed to state employees who use their own vehicles on the job.
State Sen. Preston Smith, R-Rome, said there also is discussion about adding to the gas bill a hefty fine for retailers who price-gouge at the pump.
“One idea is a $5,000 fine for every vehicle that fills up at the inflated price,” he said. “And it could go up (before the session ends).”
Reimbursement for mileage to rise
Members of the Floyd County legislative delegation all said they support increasing the 28.5-cent-per-mile reimbursement rate for state employees. Plans are to tie it to the federal rate, which is at 40.5 cents now.
“That needed to be done a long time ago,” said state Rep. Bill Cummings, D-Rockmart. “State employees using their own cars on state business are going into debt.”
State Rep. Barbara Massey Reece, D-Menlo, co-sponsored a similar measure during the past legislative session, but the Democrat-backed bill never made it out of committee for a vote.
The increase is projected to cost $4.9 million, but the current rate is “antiquated” in light of the expense to drive and maintain a car, Sen. Smith said. His position was echoed by state Rep. Barry Loudermilk, R-Cassville.
“I’m inclined to support it not just for the sake of state employees, who I think are being underpaid, but for other workers whose businesses use the state rate,” Loudermilk said.
It will be Saturday before the bills are processed through both chambers, but the session is limited to the two issues Perdue cited when he convened the legislature.
Reece said she is disappointed that questions regarding the influx of Hurricane Katrina evacuees will not be addressed.
“We’re not just in a gas crisis. We’ve got a lot of things coming down the pike,” she said.
Displaced families will need schools, medical care and jobs, she said, and the legislature should be involved in planning for the coming year.
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