State senators heard testimony Monday about how Georgia collects its gas tax, despite being nowhere close to debating a proposed $1 billion fix to the state’s transportation funding woes.
The unusual meeting of the Senate Transportation Committee came as its chairman, state Sen. Tommie Williams, R-Lyons, acknowledged trying to get ahead of an issue that will dominate this year’s legislative session. The proposed fix — House Bill 170 — was only filed last week and has not even been vetted by that chamber’s Transportation Committee members.
“We do feel like, as a Senate, we’re going to need some skin in the game,” Williams said, after his committee members heard about 30 minutes of testimony on Georgia’s complicated taxing structure that currently fuels its spending on roads and other transportation projects.
Williams has voiced supported for one of the plan’s major changes toward a flat excise tax on gas, although he warned members Monday that it would have varying effects on local municipalities statewide. He also expressed interest in learning how Florida pays for its transportation efforts, saying that state could be a good example for Georgia.
HB 170 would switch the state from a series of local and state sales taxes on gas to a flat 29.2 cents-per-gallon excise tax. Supporters say it will give the state a significant boost of new money to help pay for roads, bridges and transit.
Local officials, however, note the plan takes more than $500 million a year away from local governments who have been using that money to pay for schools, transportation, sewers and more, and gives it to the state. That has them concerned that in order to make up the difference, they would have to raise local property or sales taxes.
The bill would allow cities and counties to levy their own excise taxes on gas — up to 6 cents per gallon each — although analysis of the plan shows most counties would end up losing money if they did nothing.
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