Gas is higher — so are gas taxes

You’ll pay 3¢ more a gallon at the pump thanks to automatic tax increase

The drastic rise in gas prices statewide has triggered an automatic increase in gasoline taxes, meaning motorists will be paying more at the pump.

The gas tax will rise an additional 2.8 cents per gallon in state gas taxes starting May 1, according to state fiscal economist Kenneth Heaghney.

The increase was triggered by a rise of more than 25 percent in gas prices statewide over a six-month period, Heaghney said. That resulted in a re-figuring of the “second part” of the state’s motor fuel taxes.

The “first part” of Georgia’s gas sales tax is a flat 7.5 cents per gallon, Heaghney explained. The “second part” however can rise and fall, since it is calculated at 4 percent of the cost of gasoline, he added.

Georgia law requires the “second part” gas sales tax to be recalculated if the price of gas changes by 25 percent or more in a six-month period, Heaghney said.

The price of gasoline is monitored statewide by the Georgia Department of Revenue, which surveys the situation every week, Heaghney said.

“We have seen large price moves over the past few years,” Heaghney said.

hersch22
hersch22's picture
Offline
Joined: 06/17/2009
Maybe it is the article....

But this should be explained further. As I read it, because the price of gas has gone up more than 25% in 6 months, they get to add more tax to that on top of what they are already collecting? They are already getting 4% of the higher rate. It seems the law may have been put in place to cover any shortfalls in gas tax caused by a large DECREASE in gas prices over a short time period, in order to be able to maintain a somewhat stable income from a gasoline tax. But when the prices go up, you are going to have a windfall in gas tax revenue, and they just want to add to that? I think the politicians put one over on us. I wonder what triggers removal of the automatic 2.8 cent increase? Do we have to wait for gas to drop 25% again?