Legislature to Convene

The General Assembly will convene in special session today to ratify the governor’s suspension of the gas tax. The question not being discussed, but directly affected, will be what to do about the lost revenue to the state. That money goes for roads. The metro area might just get in a pinch without that source of revenue.

Notwithstanding that issue, the legislature is expected to support the governor’s move. Look for the Republicans to stay in line. It will be interesting to see what stance some of the Democrats take.

More from the AJC.

5 comments

  1. stephaniemills21 says:

    I kinda doubt that the state will lose much, if any, expected revenue. As the price of gas increases the state will be actually getting more actual dollars in taxes taken in. I think the increase in cost of gas will increase tax refenue that will offset or even surpass what the state will lose during the month. Rather convenient for Perdue.

  2. Decaturguy says:

    No, no, no, no, no, no, no. The state gas tax includes a set 7.5 cents a gallonis tax – not a percentage of the price of gas. Then there is a 4% sales tax on the price of gas – which is being totall suspended for the next month . Therefore, total suspension of the gas tax will cost the state money and there is no way that the state will make up the money it will lose, because there is, again, NO TAX on gas for the next month.

  3. waterboy says:

    Dacatur –
    The sad truth is that the state DOT, which reaps the rewards of increased tax revenues from the high gas prices, is hundreds of millions of dollars over their forecasted tax collections. That is an unintended consequence of the gas situation this year. State leadership is looking to put some of that money back where it belongs – in taxpayer pockets. At the Aug. 18 state DOT Board meeting, it was announced that gas tax revenues were up 16 percent over a year ago.

  4. stephaniemills21 says:

    waterboy is right. This is from capitol impact:

    The motor fuel tax suspension will decrease state revenues by an estimated $75 million during September, but the sales taxes collected on the rising retail price of gasoline during the rest of the fiscal year will make up for that dip, state revenue officials said.

    “We’ve had a windfall of motor fuel taxes because of high gas prices,� said Senate Majority Leader Tommie Williams (R-Lyons).

  5. Decaturguy says:

    You may be right that the increased price of gas, before and after the suspension of the gas tax, will make up some or all of the $75 million that it is costing the state.

    However, the state will still be losing $75 million that it otherwise would have collected nonetheless.

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