September 2, 2005
from the Governor's Office
ATLANTA – Governor Sonny Perdue announced today that Georgia consumers will be exempt from the state motor fuel tax through the end of September.
The Governor signed an Executive Order calling for a temporary moratorium on state collection of all motor fuel taxes, which will go into effect at midnight tonight.
“My purpose in temporarily suspending fuel tax collection is to relieve some of the financial burden placed on Georgians by disruptions of our fuel supply resulting from the effects of Hurricane Katrina,” said Governor Sonny Perdue. “In making this decision, I fully considered the fiscal implications. This moratorium will have no negative effect on the state budget.”
The state tax on motor fuel breaks down as follows: A prepaid 7.5 cent excise tax is collected by the Georgia Department of Revenue on each gallon of fuel sold at the distributor level. In addition to the excise tax, consumers pay an additional four percent sales tax on each dollar’s worth of fuel sold at the retail pump.
As the price of gas increases, the amount of sales tax collected also increases resulting in an increasing tax burden on the consumer as gas prices rise. For example, the state moratorium will mean that consumers who were paying $3 per gallon at the pump will save more than 15 cents per gallon in taxes.
Under state law, the Governor’s decision must be ratified by the General Assembly. Governor Perdue has called for the General Assembly to meet in Special Session beginning on Tuesday, September 6. The General Assembly will meet to consider temporary gas tax relief, as well as adjusting the administrative costs that our state government employees are reimbursed for their official travel.
“As we take this action, I want to stress to gas station owners that I fully expect the benefits of this tax moratorium to show up at the pump and be passed directly to consumers,” said Governor Perdue.
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