Cities And School Boards Still Concerned About Revised Transportation Bill
Despite revisions, local governments remain concerned about a major transportation plan under consideration by the Georgia House.
Republican leaders say the bill would generate a billion dollars annually. It would raise the state excise tax on motor fuel from 7.5 cents per gallon to 29.2 cents per gallon. To offset that increase, lawmakers want to phase out about a half billion dollars of sales tax imposed by local governments. Under the original plan, cities and counties could make up the revenue by raising a local excise tax on motor fuel.
Tom Gehl of the Georgia Municipal Association says it’s not a good trade-off. He argues local governments would be losing sales tax funds that can be used for a range of services, including parks and waste management. In contrast, revenue generated from a local excise tax would be limited to transportation purposes. Gehl wants more flexibility, especially if local governments are in the difficult position of raising taxes.
“Give us instead an adjustment to the sales tax rate that then makes us whole and keeps our flexibility and spending as an option,” said Gehl.
At a subcommittee meeting Monday, lawmakers revised the bill so county commissions alone would be in the driver’s seat in terms of the optional excise tax. A county would be able to raise up to six cents by a simple vote of its commission. Originally, city councils and county commissions each could have voted for an increase of up to three cents, then held a voter referendum to raise another three cents, for a maximum in any one jurisdiction of up to 12 cents.
The main organization representing counties has endorsed the revised bill, but representatives of school boards and cities say they still have concerns about lost revenue and lack of flexibility.
The House Transportation Committee will hold a hearing on the bill Thursday.
9(MDAxODM0MDY4MDEyMTY4NDA3MzI3YjkzMw004))
Related
Top Stories
