{"id":12205,"date":"2015-02-09T18:47:09","date_gmt":"2015-02-09T23:47:09","guid":{"rendered":"http:\/\/www.l-a-k-e.org\/blog\/?p=12205"},"modified":"2015-02-09T18:48:08","modified_gmt":"2015-02-09T23:48:08","slug":"valdosta-resolution-against-ga-hb-170-sales-to-excise-transportation-tax-switch","status":"publish","type":"post","link":"http:\/\/www.l-a-k-e.org\/blog\/2015\/02\/valdosta-resolution-against-ga-hb-170-sales-to-excise-transportation-tax-switch.html","title":{"rendered":"Valdosta resolution against GA HB 170 sales-to-excise transportation tax switch"},"content":{"rendered":"

\r\nWhile the Lowndes County Commission has no position,\r\nthe City of Valdosta already voted to oppose the legislature’s\r\n\r\nHB 170 proposed stealth tax hike<\/a> that would convert a local sales\r\ntax into a state excise tax, forcing local governments to raise\r\nproperty taxes.\t\r\n

\r\nValdosta PR\r\n\r\nResolution to Oppose the State of Georgia\u2019s Transportation Funding Act of 2015<\/a>,\r\n

\r\n

\r\n\r\n<\/a>\r\n\r\nClick here<\/a> to view the Resolution to Oppose the State of Georgia’s\r\nTransportation Funding Act of 2015.\r\n<\/p>\r\n

\r\n\r\nClick here<\/a> to view the Local Sales Taxes Collected on Motor Fuel\r\nSales by county.\r\n<\/p>\r\n

\r\nThe Valdosta Mayor and City Council unanimously approved\r\n\r\n a\r\nResolution at the Feb. 5 City Council meeting opposing the State of\r\nGeorgia’s proposed plan to divert over $500 million in local taxes\r\nfrom local governments and divert it to the State Government.\r\n<\/p>\r\n

\r\nThe new Transportation Revenue Plan, unveiled as House Bill 170 on\r\nJan. 29, proposes to raise about $1 billion a year for\r\ntransportation funding. This legislation addresses Georgia’s\r\ncritical transportation infrastructure needs and provides more than\r\n$1 billion in new transportation funding without a state tax\r\nincrease. The plan would shift the State completely away from a\r\nsales tax on gas to a 29.2 cents per gallon excise tax. It would\r\neventually end the local sales tax on gas, while allowing counties\r\nand cities to levy their own excise tax. In addition, electric and\r\nalternative-fuel vehicle owners will have to pay an annual $200 user\r\nfee ($300 for commercial vehicles) with that money being designated\r\nfor transit. Finally, the 2016 State budget, which will take effect\r\nJuly 1, 2015, will include a significant bond package to pay for\r\ncritical road and bridge improvements as well as $100 million for\r\ntransit, although details of how that money will be allocated are\r\nnot yet decided.\r\n<\/p>\r\n

\r\nThe Transportation Funding Act of 2015 is a comprehensive package of\r\nmeasures. Provisions of the bill are as follows:\r\n<\/p>\r\n

\r\n(1) The Act will convert the sales tax on motor fuel to an excise\r\ntax. This excise tax will be set at 29.2 cents per gallon which\r\napproximates the sales tax rate which has been imposed on gasoline\r\nusing a weighted average of the price of gasoline over the previous\r\nfour years ($3.39 per gallon total price at pump). This excise tax\r\nwill be indexed to Corporate Average Fuel Economy (CAF\u00c9) standards\r\nas well as CPI and adjusted annually to ensure that it keeps pace\r\nwith the ever-increasing fuel efficiency of vehicles. This provides\r\na reliable, predictable funding source dedicated to transportation.\r\n<\/p>\r\n

\r\n(2) Converting the sales tax on motor fuel to an excise tax adjusts\r\nGeorgia’s participation in, and advantage of, the International Fuel\r\nTax Agreement (IFTA). Doing so will result in an additional $60\r\nmillion to the state.\r\n<\/p>\r\n

\r\n(3) Converting to an excise tax dedicated to transportation will\r\nhave the effect of moving the “fourth penny” revenue\r\npreviously collected on motor fuel from the state’s general fund to\r\nfunding for transportation needs. This will result in an additional\r\n$175 million in transportation funding per year.\r\n<\/p>\r\n

\r\n(4) Any special purpose local option sales taxes on motor fuel\r\ncurrently authorized by the voters will be honored. Those SPLOST\r\ncollections, which would be over and above the state’s excise tax,\r\nwould cease after their expiration dates as originally approved by\r\nlocal voters. Motor fuel would be exempt from any future SPLOST.\r\n<\/p>\r\n

\r\n(5) Local governments will be able to charge an additional excise\r\ntax of up to 6 cents per gallon (up to 3 cents for counties and up\r\nto 3 cents for cities) for local transportation projects by a vote\r\nof their county commission and\/or city council. Any additional\r\nexcise taxes local governments wish to levy on motor fuel beyond the\r\nlimit would require a referendum offered to the residents of that\r\njurisdiction.\r\n<\/p>\r\n

\r\n(6) Alternative fueled vehicles will pay a user fee of $200 for\r\nnoncommercial and $300 for commercial vehicles each year. As these\r\nvehicles do not use gasoline, their owners do not currently pay\r\ntheir share of taxes devoted to the maintenance of the roads they\r\nuse. This will provide equity among those who drive on our roads and\r\nensure everyone pays their fair share. This fee will not be imposed\r\non hybrid vehicles which require purchase of gasoline. This revenue\r\nis intended to be used for transit systems.\r\n<\/p>\r\n

\r\n(7) Recapitalize the Georgia Transportation Infrastructure Bank so\r\nthat a revolving, self-sustaining, loan\/grant fund is created to\r\nincentivize governments, authorities, CIDs and other entities to\r\nprovide matching funds for local construction of projects. The\r\nTransportation Infrastructure Bank will be directed to assist tier 1\r\nand tier 2 counties and encourage investment in every region of our\r\nstate.\r\n<\/p>\r\n

\r\n(8) A significant bond package will provide for critical bridge\r\nmaintenance, transit system funding and other transportation\r\nprojects across the State. This is a prudent way to provide more\r\nimmediate funding for our transportation needs while leveraging the\r\nstate’s high credit-rating to borrow at little cost to the state.\r\n<\/p>\r\n

\r\n(9) Increase funding for Local Maintenance and Improvement Grants\r\n(LMIG).\r\n<\/p>\r\n

\r\nThe Bill will now go through the Committee process and may be\r\namended prior to reaching the House floor for a vote. If approved,\r\nit would then go to the State Senate for consideration.\r\n<\/p>\r\n

\r\nThis Bill (HB 170) would remove all State and local sales taxes (4%\r\nState and up to 3% local) on the sale of motor fuel and would raise\r\nthe State’s current 7.5\u00a2 per gallon excise tax to 29.2\u00a2 per\r\ngallon. The State excise tax would be adjusted annually based on the\r\nConstruction Price Index and the average miles per gallon usage by\r\nvehicles registered in Georgia.\r\n<\/p>\r\n

\r\nSPLOST and ESPLOST taxes currently in place will be allowed to be\r\ncollected on motor fuel sales until they expire, but once expired,\r\nany new SPLOST or ESPLOST would not be collected on motor fuel\r\nsales. The collection of LOST on motor fuel sales would end once a\r\nnew certificate is filed with the Department of Revenue (usually\r\nwhen the LOST distribution formula is renegotiated after the\r\ndecennial Census).\r\n<\/p>\r\n

\r\nThe proposed 29.2\u00a2 per gallon excise tax would roughly keep what\r\nconsumers currently pay in combined State and local taxes (State\r\nmotor fuel tax, State sales tax and local sales taxes) the same.\r\nCities, counties and schools, however, would no longer collect\r\napproximately $500 million per year (see attachment) from local\r\nsales taxes on motor fuel sales used to fund local priorities.\r\n<\/p>\r\n

\r\nWith regard to local excise taxes, HB 170 would allow cities and\r\ncounties to each implement a 3\u00a2 per gallon local excise tax by\r\naction of the governing authority and an additional 3\u00a2 per gallon\r\nlocal excise tax if approved by voters in a referendum. Revenues\r\nraised by a local excise tax would be limited to being spent only\r\nfor transportation purposes. A county excise tax would be\r\nimplemented on all sales within the county, to include sales within\r\na city. A city excise tax would be implemented on top of the county\r\nexcise tax on sales within the city limits.\r\n<\/p>\r\n

\r\nIn the effort not to “raise taxes” at the State level,\r\nHB 170 would create substantial funding shortfalls for cities,\r\ncounties and schools, and would shift the burden to raise taxes to\r\nlocal elected officials.\r\n<\/p>\r\n

\r\nCities, counties, and school boards are encouraged to read HB 170\r\nand determine what the impact will be to your local government and\r\ncommunity. Meetings should be held with officials from school\r\nsystems, counties and neighboring cities to discuss the negative\r\nfiscal impact the passage of this bill would have on the ability of\r\nyour community to fund local priorities in the future.\r\n<\/p>\r\n

\r\n\r\nClick here<\/a> to view to Oppose the State of Georgia’s Transportation\r\nFunding Act of 2015.\r\n<\/p>\r\n

\r\n\r\nClick here<\/a> to view the Local Sales Taxes Collected on Motor Fuel\r\nSales by county.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\n -jsq\r\n<\/p>","protected":false},"excerpt":{"rendered":"While the Lowndes County Commission has no position, the City of Valdosta already voted to oppose the legislature’s HB 170 proposed stealth tax hike that would convert a local sales tax into a state excise tax, forcing local governments to raise property taxes. Valdosta PR Resolution to Oppose the State of Georgia\u2019s Transportation Funding Act […]","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[14,8,20,449,54],"tags":[2311,8704,8241,2282,8701,8218,8702,8710,12,7,8242,1147,8767,6,8726],"class_list":["post-12205","post","type-post","status-publish","format-standard","hentry","category-economy","category-georgia","category-law","category-transportation","category-valdosta-city-council","tag-diesel","tag-economy","tag-excise-tax","tag-gasoline","tag-georgia","tag-hb-170","tag-lake","tag-law","tag-lowndes-area-knowledge-exchange","tag-lowndes-county","tag-motor-fuels","tag-sales-tax","tag-transportation","tag-valdosta","tag-valdosta-city-council"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p585fK-3aR","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/12205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/comments?post=12205"}],"version-history":[{"count":2,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/12205\/revisions"}],"predecessor-version":[{"id":12207,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/12205\/revisions\/12207"}],"wp:attachment":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/media?parent=12205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/categories?post=12205"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/tags?post=12205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}