The bill hasn’t even been filed yet, but tea party activists are already labeling a plan by House Republicans to fund transportation in Georgia a tax increase.
Tea Party Patriots leader Debbie Dooley labeled the plan a “scheme” that would raise gas prices by 7.7 cents per gallon.
“House Republicans are causing everyday Georgians to be burdened with higher taxes/gas prices while they give large corporations massive tax breaks and are helping fund a parking deck for the new Atlanta Falcons stadium,” Dooley wrote in an alert to supporters late Wednesday.
Republican leaders in the House earlier Wednesday unveiled a plan to generate nearly $1 billion in new revenue for transportation projects plus a major borrowing plan to include $100 million in bonds for transit. The key to the new revenue is to convert the existing state and local sales tax on gasoline to a 29.2 cents-per-gallon excise tax that would increase with inflation.
Transportation Committee Chairman Jay Roberts, R-Ocilla, said his proposal would not be a tax increase but would generate the additional revenue by consolidating the myriad existing local and state taxes under one overall levy. The state would also see new revenue from truckers who do not remit taxes to the state on sales taxes on fuel but would on an excise tax.
The plan is expected to be introduced as a bill Thursday.
Meanwhile, the Georgia School Boards Association warned local school boards late Wednesday that the plan would cost local school districts about $172 million a year and all local governments about $516 million a year.
The House plan would allow existing local special option sales taxes, or SPLOSTs, to continue until they expire. After that, however, local governments would be allowed to levy an additional 3 cents per gallon excise tax, but all of that revenue would have to go to transportation.
Motor fuel would be exempt from any future SPLOST, which would limit the tax’s revenue base. In fiscal 2014, that equaled $172 million for school boards and $516 million for all local governments.
“Those of you who are in areas with little retail would be especially hard hit,” the school boards association warned its members. “You need to figure out how much of your SPLOST dollars are coming from motor fuel and let your legislators know what the impact would be and how it would affect your future plans.”
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