Tax break for farmers, not drivers
Governor says drought-stricken industry needs help with gas prices, but he rejects wider suspension as too costly.


The Atlanta Journal-Constitution
Published on: 05/13/08

With fuel prices continuing to rise, Gov. Sonny Perdue on Monday suspended state taxes on fuel for off-road vehicles used by farmers and timber workers.

However, Perdue said the state can't afford to give the same tax break to Georgia drivers.

In fact, the state fuel tax for drivers will go up July 1, when the Department of Revenue resets the rate based on the higher price of gas.

The governor announced his executive order suspending some farm fuel taxes in Macon, where he went to sign a few agricultural bills into law. Later in the day, Perdue signed a bill that will provide about $10 million a year in tax credits to the entertainment industry.

The governor, who owns a Houston County agri-business company, said farmers badly need relief from rising oil prices.

"Our farmers have borne the brunt of this multiyear drought and now face record fuel prices during planting season. Suspending this tax will bring needed relief to our state's largest industry," Perdue said.

House Minority Leader DuBose Porter (D-Dublin) said farmers need the help, but so do all Georgians.

"If we're going to suspend the gas tax, it should be for everybody," Porter said. "This is probably the No. 1 drag on the economy because of how it affects working families, including farmers."

The Georgia House and Senate, as well as the Georgia Farm Bureau, had asked Perdue to consider suspending the tax, a move that will save farmers and timber industry officials $2 million to $4 million.

In a letter to Perdue, Farm Bureau President Zippy Duvall wrote, "Suspension of the sales tax on off-road diesel fuel would help farmers, it would promote a major segment of our state's economy and it would allow for more money to be spent in local rural economies."

The suspension will continue in effect at least until the General Assembly meets again in January.

The state is expected to collect about $1 billion in fuel taxes during fiscal 2009, which starts July 1.

The governor said the state can't afford to suspend all fuel taxes because the money goes to pay for roads.

"I'd love to do it for everyone, but we just can't continue to build the infrastructure if we remove the very resource we use to build it with," Perdue said.

Rep. Rob Teilhet (D-Smyrna) noted that during the 2008 session, Perdue opposed new roads funding, arguing that the Department of Transportation was a financial mess.

He said the governor should at least suspend any increase in gas taxes that would take effect in July. Department of Revenue officials have not yet set the new rate, but they will by the beginning of next month.

Perdue suspended gas taxes for all Georgians briefly in 2005 after Hurricane Katrina brought a run-up in prices at the pump.

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