Perdue Says No To Gas Tax Moratorium For Georgia

Farmers and timber companies got a break from record-high fuel prices on Monday as Gov. Sonny Perdue suspended the state sales tax on diesel for off-road uses, according to But Georgians driving the state’s roads shouldn’t be expecting any such relief. Instead, the state’s gasoline tax will rise on July 1.

Yes, you read that right: Perdue is going to stand by and allow gasoline taxes to increase for everyone who isn’t a farmer:

Beginning on the July 1 start of the fiscal year, motorists will have to pay even more state taxes. The Georgia Department of Revenue recalculates part of the state sales tax on gasoline every six months based on the average price throughout the state. When that average rises, the tax does too.

Thanks for nothing, guy!


  1. Dave Bearse says:

    We’re talking about a guy who helped himself to a $100,000 tax break arranged by a Middle Georgia crony after all. Cronies take of him. He takes care of cronies.

  2. TM2000 says:

    What a lot of people don’t know is that the nation’s infrastructure is already underfunded as it is. The cost of building materials has skyrocketed but the taxes have stayed the same.

  3. Holly says:

    Added together, state and federal taxes make up roughly 13% of the cost of gas. The federal tax is 18 cents, and I’m not sure what the state tax is, but it’s obviously not that much. At most, it’s a few cents per gallon. A small portion of the price of gas is refining costs. A whopping 70% is the price of crude oil.

    From every barrel of oil comes 42 gallons of gas. If you do some math there, crude oil is currently selling at around $3 a gallon. To actually find “relief at the pump,” we’re going to have to increase the supply of oil available. If we don’t, prepare for prices to go even higher.

  4. Chris says:

    “What a lot of people don’t know is that the nation’s infrastructure is already underfunded as it is.”

    And its only gonna get worse as we spend billions on federal handouts to Farmer Bob and Frank in Buckhead and Manhattan, while the rest of us down grade from the H2s to 60mpg sub-compact diesels.

  5. Demonbeck says:

    I seem to remember that gas taxes (this is back in the days of <$2.00 /gallon) were about $0.42 /gallon.

  6. Demonbeck says:

    Yes Holly.

    According to,

    “Together Federal and State excise taxes on fuel account for an average cost of approximately 62 cents per gallon. Rates include Federal excise taxes 18.4 cpg for gasoline and 24.4 cpg for diesel. cpg = cents per gallon”

    According to the website, in Georgia, total taxes on fuel come to 44.4 cents per gallon for gas and 52.6 cents for diesel.

  7. Donkey Kong says:

    Throw Sonny “RINO” Perdue out of office.

    I don’t entirely blame Sonny, though. Does anyone know what it actually means to be a Republican these days? We need a clean slate at both the national and state GOP leadership and let’s just start over. Admit it — GOP leadership has failed miserably, one of the greatest party failures of all time. Just 8 years ago we were talking about how the GOP has established rule for decades to come. Now where are we????

  8. Holly says:

    Okay, so even with the taxes, we can still see that we have a major problem with the supply side of the issue. The taxes collected, at least at the federal level, go directly to a fund for infrastructure. I’m not sure what the state taxes’ purpose. It worries me that suspending the gas tax is becoming the quick solution to the problem. However, it really just diverts the attention away from the real issue. We’ve got to allow more access to domestic resources and get a real permitting process in place for things like shale oil and tar sands.

  9. Donkey Kong says:

    Holly, you’re right. And the recent addition of the polar bear to the endangered species list doesn’t help and, from what I’ve read, seems to basically forbid any hope of drilling in ANWR.

    Furthermore, McCain is touting a cap and trade policy that is just additional regulation on American business. We already have the second highest corporate income tax rate in the world. Isn’t that enough?? It’s no wonder that corporations choose to divert business overseas. It will be interesting to watch the transformation of American business and the forthcoming job losses as the dollar strengthens. Foreign corporations choose to locate in America when the dollar is depreciating to minimize the hit of the weak dollar on earnings. When the dollar appreciates, however, foreign companies start pulling their resources back home. When this happens, we will need to be as competitive as possible to stymie the ensuing job loss. I’m not predicting a catastrophe, but I don’t think we’ll realize how much competitiveness we have lost to foreign markets until the dollar begins a prolonged period of strengthening (which can really happen any day now, and may have already started — many currency traders, indeed, the ECB itself, believes the Euro is materially overvalued).

  10. Just the Facts Please says:

    Here’s the taxes you pay on motor fuel:

    Federal: 18.4 cpg
    State Excise Tax: 7.5 cpg
    State Prepaid Sales Tax: 11.0 cpg
    Local Prepaid Sales Tax (3 percent counties): 8.25 cpg

    Total: 45.15 cpg (and going higher)

    The state prepaid sales tax has increased 44% in one year. 75% of this is dedicated to DOT. The locals have realized the same 44% windfall increase due to higher gas prices.

    Just the facts

  11. Just the Facts Please says:


    When the price of crude goes back down to $20 a barrell, maybe you will have the opportunity to do both, because we know government won’t be reducing any taxes.

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