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The House Transportation Committee on Monday overwhelmingly approved an updated version of a plan supporters hope will generate nearly $1 billion in new revenue for roads and bridges.
The decision to approve House Bill 170 did not come without a surprise or two. First, lawmakers agreed to an amendment that strips Delta and other airlines of a tax break on the purchase of jet fuel. Second, the committee took no vote on a proposed amendment that would require the Department of Transportation to send a minimum amount of its work to companies owned by women or minorities.
The vote means HB 170 could reach the House floor as soon as Wednesday.
The committee's action gives the bill renewed momentum after a series of setbacks the past 10 days, something the bill's sponsor, Rep. Jay Roberts, R-Ocilla, acknowledged.
“We have finally reached a point that I believe we have a good piece of legislation that will allow us, not just now, but down the road, to get enough funding to help us move forward,” Roberts said.
In addition to adding the language to eliminate Delta’s tax credit, the latest changes to the bill mostly deal with local taxes. Gone from the bill are plans to phase out local special option sales taxes and replace them with excise taxes.
Instead, HB 170 would leave alone SPLOSTs and similar taxes levied by school districts but require any revenue raised from motor fuel go to a wide variety of transportation uses. Any municipal option sales tax or local option sales tax used to roll back property taxes, however, would no longer apply to motor fuel and the rate would increase from 1 percent to 1.25 percent.
The bill would still abolish existing state sales taxes on motor fuel and implement a new excise tax of 29.2 cents per gallon of gasoline and 33 cents per gallon of diesel fuel. It also would end the state’s $5,000 income tax credit for the purchase of electric vehicles and create a new annual registration fee for electric cars. The fee would be $200 for personal vehicles and $300 for commercial cars, trucks, vans and buses.
HB 170 has had a rocky few weeks. After overwhelmingly passing out of the Transportation Committee last month, Roberts had to later send the bill back to committee to address more concerns from cities and counties. Then, last week's wintry weather canceled another planned committee meeting, delaying progress further.
Monday's vote was not without drama. Rep. Keisha Waites, D-Atlanta, introduced her expected amendment related to women- and minority-owned businesses. Waites acknowledged, however, that DOT Commissioner Russell McMurry had written a letter committing the department to producing a "disparity" study to investigate the issue.
That was good enough for Rep. Al Williams, D-Midway, who, like Waites, is African-American.
“I think the letter addresses the concern,” Williams said. “I believe everybody until they prove me wrong. I’d like to see (DOT) have the opportunity to do what they have proposed.”
Ultimately, the committee took no vote on the amendment.
Also, the inclusion of the Delta tax credit language was a surprise. Proposed by Rep. Mark Hamilton, R-Cumming, the amendment mirrors a separate bill, House Bill 175, that is also moving through the legislative process.
Hamilton said removing the tax credit would generate $23 million that could be used for airport projects throughout the state.
“My commitment has been to get every dollar from transportation to transportation,” Hamilton said.
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