With a budget hole of more than $1 billion, Georgia seeks to fund its transportation department through changes in motor regulations and taxes.
Infrastructure in Georgia is suffering, and experts are
estimating that it will take between $1 billion to $1.5 billion to rebuild the
Peach state’s roads and bridges.
A bill, named the Transportation Funding Act of 2015, is being
considered by the state legislature. The bill has several provisions that could
increase fuel taxes, eliminate the state’s tax credit for electric car buyers
and increase registration fees for drivers of alternative fuel vehicles.
“It would impact everyone who drives a car,” says NFIB Georgia
state director Kyle Jackson.
The increase in revenue for the Department of Transportation
would go directly to transportation purposes. As cited in the bill, this
“includes roads, bridges, public transit, rails, airports, buses, seaports and
all accompanying infrastructure and services necessary to provide access to
these transportation facilities.”
The majority of Georgia voters, 57 percent, would be willing to
pay more in gas taxes to fund transportation improvements, according to a survey released by Wilson Perkins Allen
Opinion Research on Feb. 15. In addition, 51 percent of those polled said they
thought the state dedicated too little to roads and bridges.
The group Americans for Tax Reform, led by anti-tax advocate
Grover Norquist, is adamantly against fuel tax increases, however. According to
a statement from the group, “not only does the bill result in an immediate gas
tax hike, it gives local governments free rein to raise local gas taxes in the
future.”
The specific provisions in bill have not been solidified amid
budgetary concerns. As introduced, the bill allowed for counties to impose
their own excise tax on fuel up to 3 cents per gallon. This would help close
the revenue gap from a larger portion of the fuel tax directly funding the
Georgia Department of Transportation.
Some opponents of the bill have noted that getting rid of the
electric car tax break could stall vehicle sales in the state. Atlanta is one
of the hottest markets for electric vehicles, largely because of the state’s
generous tax credit for a new purchase. A possible compromise could be to lower
the credit, rather than eliminate it entirely.
The House passed the measure on March 5, and it’s now awaiting
approval in the Senate.. At this time, NFIB has not taken a position and will
soon seek input from members.
“We are actively monitoring it,” Jackson says. “We will reach
out to our members …and get their pulse on it.”
