Ga. May Raise Fuel Tax

CONYERS, Ga. -- State Sen. Mike Crotts (R-Conyers) said he thinks increasing the state sales tax on gasoline by one penny in exchange for eliminating the ad valorem taxes on vehicles can result in a win-win situation for all taxpayers.

"When you look at the savings to the taxpayer and also look at the secondary revenue it could generate -- more revenue for roads, road improvements and the potential of people buying more cars because they don't have to pay ad valorem tax -- when you see other people traveling through the state helping to pay our taxes, I think more people will be favorable than against it," Crotts told the Rockdale Citizen.

According to Dale Shuirman, motor fuel tax administrator with the Georgia Department of Revenue, Georgia has lower taxes on gasoline than most other states. The state excise tax is .075 cents, the second motor fuel tax is 3 percent and the state sales tax is 1 percent. In counties like Rockdale and Newton, where the sales tax rate is 7 percent, taxes account for 35 cents of $1.50 per gallon of gasoline.

Georgia sells 6.5 billion gallons of gasoline a year, Shuirman said.
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