Surprise! A 3-cent gasoline tax to hit May 1
The Savannah Morning News has this gem about a hidden, 3-cent increase in the gasoline tax that will kick in on May 1:
The tax in Georgia is a flat 7.5-cents per gallon, plus an amount based on price. The part based on price is set on Jan. 1 and July 1 and goes up between those dates when the price of gas rises by more than 25 percent.
The price of gas has risen by more than 25 percent lately.
The rate of 10.1 cents per gallon that was set on Jan. 1 will go up to 12.9 cents per gallon on May 1, an increase of 2.8 cents, said Ken Heaghney, Georgia’s fiscal economist.“It’s tied to the sales price,” said Brian Robinson, the governor’s spokesman. “It’s an automatic thing. The state didn’t vote to raise taxes.”
When gasoline prices were climbing in the summer of 2008, then-Gov. Sonny Perdue issued an executive order freezing the tax rate, saying he couldn’t justify raising taxes on gas when so many families were struggling.
Can customers expect a repeat from Gov. Nathan Deal?
Not likely.“The governor believes an action like this, barring a state of emergency, is best taken in coordination with an act of legislation because it does have fiscal impact,” Robinson said.
“It’s not responsible to take that risk for a 3-cent tax issue,” Robinson said.
- By Jim Galloway, Political Insider
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249 comments Add your comment
USC GAMEC0CK
April 21st, 2011
4:21 pm
Unfortunately “OleGuy”…the people you call idiots are the ones who get government handouts and then get our politicians to tax the rest of us even more so the “idiots”, as you call them, can keep getting in our pockets through government taxation…seems like the idiots have figured out how to get without work…plus they don’t even know how the economy really works…amazing…it really is amazing.
Bacchus
April 21st, 2011
4:22 pm
@Fletch – The last time we paid $4.50 per gallon, the roads were clear of jams because half the gas stations had run dry due to a supply shortage (refinery shutdowns in the Gulf due to hurricanes). Nobody could buy any gas to begin with.
We’re going to still have heavy traffic, it will just cost more for the pleasure of sitting in it.
deegee
April 21st, 2011
4:23 pm
“The governor believes an action like this, barring a state of emergency, is best taken in coordination with an act of legislation because it does have fiscal impact,” Robinson said. “It’s not responsible to take that risk for a 3-cent tax issue,” Robinson said.”
What risk? Sonny did it, why can’t the spineless Nathan Steal do the same thing? I guess he needs the money.
John McClain
April 21st, 2011
4:24 pm
Hey “Skreet”, I have 2 SUV’s, 1 large and 1 med, and have owned some form of full-size SUV going back to mid 90’s. Yes it is my decision to drive them, it’s your decision not to drive one, which is your deal, but until I start asking to borrow money for gas then I suggest you keep your econo box opinions to yourself. Thanks for playing!
Fletch
April 21st, 2011
4:24 pm
Centrist – “It does NOT take 20 years to produce oil when there are rigs and workers unemployed due to the embargo.’
You’re right, but it does take refineries to produce gasoline. Since no new ones have been built in over a decade, it will take some time to refine the product into useable fuel. In addition, just because the oil can be opbtained her, doesn’t mean it will be sold here. The oil rights still belong to the company that produces the oil, and they are free to market that product to whomever they so choose.
cs
April 21st, 2011
4:24 pm
if its “only” 3 cents then just take 3 cents off what it previously was, not add 3 more. but we all know somebody has to make up what delta etc aint paying. guess who dat iz?
had enough republican policy yet? me has and cant wait till 2012!!!!
Skreet
April 21st, 2011
4:26 pm
“Hey “Skreet”, I have 2 SUV’s, 1 large and 1 med, and have owned some form of full-size SUV going back to mid 90’s.”
Keep paying it forward to the Middle Easterners old man!
HENRY
April 21st, 2011
4:27 pm
Obama is a fool and doesn’t have a clue about economics. I wish he would go on one of his vacations and never return. Maybe back to his home in Kenya.
Fletch
April 21st, 2011
4:27 pm
Baccus – “Nobody could buy any gas to begin with.’
That actually was true around the metro areas. However, I tended to fill up outside the metro. Even though there was a BP 3 miles from my house, it was usually socked in with with drivers or out. However, when I would commute up to Brasleton, it was no problem stopping in and filling up.
John McClain
April 21st, 2011
4:28 pm
Well “Skreet” what do you drive my friend?
Fletch
April 21st, 2011
4:30 pm
HENRY – “I wish he would go on one of his vacations and never return. Maybe back to his home in Kenya.”
Could you clarify how that would affect a STATE mandated gas tax?
Brin
April 21st, 2011
4:31 pm
So let me ask just two questions…Are you better off now than you were 2 yrs. ago…? and ….How is that hope & change working out for you..We deserve the government we vote for…Forget skin color..and vote for your country.
E-Roll
April 21st, 2011
4:31 pm
Centrist – you have to agree that it takes years to build an oil rig and produce oil so the market today is not being affected by the ban on “new” oil drilling permits. There are several factors that have produced this price increase – demand for gas is up with the continued industrialization of China, India and other countries ( a billion new car owners can do that to the market), Middle East unrest has always affected the price of gas and it is doing it right now as well as speculative pricing that which has always said that because we travel more in the summer time, we have more demand and more demand increases the cost of any product. The current price of gas is not a result of a policy that has been in place for less than two years that will not show its affect until well into the future.
I am sure that all that I just wrote will not change your maind but I had to get it off my chest anyway, now enjoy your view of the trees and let me know when you find the forest.
Skreet
April 21st, 2011
4:32 pm
1998 toyota corolla. I got rid of my SUV back in 1997 when gas was 85 cents a gallon because I knew this day would come. I prefer to use my money on other things than throwing it away on middle eastern fuel…but by all means keep consuming…it is making my Exxon stock skyrocket!
Fletch
April 21st, 2011
4:33 pm
Brin – “Are you better off now than you were 2 yrs. ago…? and ….How is that hope & change working out for you”
Yes, but it has nothing to do with Obama or any other politician Left or Right. And, not sure, becuase I don’t live my life based on campaign slogans.
Dan
April 21st, 2011
4:35 pm
Hey Jenkins, how about voting for substance and leadership( or lack of ) instead of skin color …
E-Roll
April 21st, 2011
4:36 pm
Brin – I am better off today than I was two years ago. I have had a salary increase and just got my bonus last week so hope and change is benefiting me fine because I didn’t over extend myself and I made contingency plans in case I lost my job which luckily didn’t happen.
Thanks for asking!
Fletch
April 21st, 2011
4:36 pm
Skreet – “it is making my Exxon stock skyrocket”
if you are into energy stocks, check out Brigham Exploration and Earthstone. They operate primarily out of the Williston Basin. The stocks are solid, and perform very very well!
Last Man Standing
April 21st, 2011
4:36 pm
Terence:
Thanks for the advice, but I think I will continue to loathe Hussein.
John McClain
April 21st, 2011
4:39 pm
I figured it was something along those lines, but you still have to put GAS in it and unless you have a well in your back yard YOU contribute to the Middle Easterners as I do. Oh and don’t worry even after filling up both trucks and the boat I still have plenty to whatever I please on other things too, like a road trip to my beach house in SC, and you guessed it, I will take my roomy tv filled truck! My stock is up also, so we’re both good there!
gouged again
April 21st, 2011
4:40 pm
I just watched a specail the other night that informed us that over 1 million barrels of oil a day {is that right?} come from canada {sand fields}. Why is it every time someone in the middle east farts, the price of gas goes up?
E-Roll
April 21st, 2011
4:41 pm
John McClain – I loved you in Die Hard I and II but the last two movies were too much for me, lol.
Fletch
April 21st, 2011
4:42 pm
gouged again – “canada {sand fields}.”
Also part of the Williston Basin. Seriously, there are some great investment opportunites outside the gulf fields!
GaBlue
April 21st, 2011
4:43 pm
I have a smallish-SUV that gets decent mileage, and have modified my lifestyle to reduce the number of days I take the car out of the garage. But I have to say to those (barren ones) who blast SUV drivers all the time: KIDS = CARPOOLING. Parents drive groups of kids around, and trade off that responsibility with other parents. If they play football, baseball, lacrosse, etc., the gear has to go somewhere, Sparky. The word “utility” means something to responsible parents, so just because you see one person in an SUV does not mean he or she is wasteful. And yes, we PAY for it.
John McClain
April 21st, 2011
4:44 pm
E-Roll, I understand no worries, had to do them to keep fueled up! lol………
John McClain
April 21st, 2011
4:46 pm
Thank you GaBlue, try doing all that kid and equipment hauling in Skreet’s 98 Corrola!
Shady Deal
April 21st, 2011
4:48 pm
Thanks for electing me suck3rs. Now with this new tax I can save my house. Oh by the way, I’ll just save a ton by gasing up in South Carolina….
lulu
April 21st, 2011
4:58 pm
Um, this is not new. Is it actually news to this many people?
Since I don’t have a gas-guzzling SUV or a 20-mile commute, it truly doesn’t affect me, but I’m seriously tired of listening to everyone whine about the price of gas.
jojo
April 21st, 2011
5:00 pm
GREED MARCHES ON.
USC GAMEC0CK
April 21st, 2011
5:02 pm
If your looking for a couple of GREAT energy related stocks to get into…check out Chevron CVX (great dividend and low PE ratio) and Schluberger SLB (good dividend a higher PE ratio but very good prospects)…Thank goodness something out there is working well!
USC GAMEC0CK
April 21st, 2011
5:03 pm
sorry, should have written you’re not your…again, my apologies.
lulu
April 21st, 2011
5:03 pm
Oh, and FYI, GaBlue: Kids do not equal SUV. My Civic gets me, my kids, my pets, and of our stuff everywhere we need to drive to get to – soccer, swim team, playground, etc. Within a few miles we usually opt for biking rather than driving – I can still carry everything we will need. Feel free to keep trying to justify it to yourself, but quit blaming your children.
acstas87
April 21st, 2011
5:06 pm
Republican, letting a tax hitting the middle class hardest go up? Georgia voted for him.
artyc
April 21st, 2011
5:06 pm
you voted for deal and you got the bums deal
GaBlue
April 21st, 2011
5:08 pm
lulu,
Who the heck are YOU, and why would I need (a) justify anything to YOU, or (b) blame my children because I chose to have them and engage them in activities that benefit their health and social skills?
I shopped carefully for my vehicle. I rallied for work-at-home days in my department, and now we all telecommute two days a week. I map out my errands for efficiency, take fewer trips, and carpool when necessary. AS A NATURE LOVING LIBERAL TREE HUGGER, I am happy to embrace the next generation of affordable, eco-efficient vehicles that meet my needs. I don’t need for forgiveness for finding balance, but you CAN bite the fleshy part of my behind if you like.
Centrist
April 21st, 2011
5:09 pm
Some FACTS (instead of just political posturing):
The price of oil is based on a world-wide market of supply and demand. Most of our domestic production of oil comes from deep wells in Gulf of Mexico. Almost four months after the administration’s moratorium was lifted in the Gulf of Mexico, the Department of the Interior has issued only three deepwater drilling permits. More than 100 drilling rigs in the Gulf lie idle (along with all of those jobs).
The U.S. is currently using only 85% of its oil refining capacity.
bob
April 21st, 2011
5:19 pm
If we are all driving Diesels, we’d use 20% less oil. Supply and Demand. If we all decreased our demand by 20%, prices would drop. So, go out, buy a diesel and help save our country from the Arabs.
Neal Kelley
April 21st, 2011
5:20 pm
While I know a lot of people are hurting. Our state government needs the revenue. With soooooooooooo many people out of work it is very important that we fund our government to ensure we have the money to create programs that produce jobs. The government does not have an endless supply of money. It has to come from somewhere.
Alicia
April 21st, 2011
5:20 pm
Sure, no one is state government had anything to do with raising the gas tax. It happened on its own. Shazzam !!!
realist
April 21st, 2011
5:30 pm
The Gulf drilling ban has absolutely nothing to do with current gas prices. Lack of crude oil is not the problem. The NYMEX delivery hub for WTI in Cushing, Oklahoma is almost full. High oil and gas prices are the result of a plumetting $ and the fear factor of major supply disruptions in the ME and NA. Saying the drilling ban has ANYTHING to do with this shows a complete lack of understanding on world energy markets. But let’s go ahead and keep slapping those “Drill Here, Drill Now, Pay Less” bumper stickers on our cars. You might as well put one next to it that says “Hi. I’m an idiot.”
Surprise! A 3-cent gasoline tax to hit May 1 | Conservative GA
April 21st, 2011
5:32 pm
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Kay
April 21st, 2011
5:33 pm
Sigh..
The adjustment is written into the GA tax code. It’s automatic. The tax is adjusted twice a year and if during that time the price of gas increases or decreases by 25%, the gas tax will increase or decrease respectively. If the price does not increase or decrease by 25% then that part of the tax remains the same.
When Gov. Purdue suspended the gas tax in September of 2008, it put, at most, $20 back into the pocket of each gas buying Georgia resident – , but it cost the state about $75 million is gas tax revenue. That means that the budget for the following year was based on 11 months of gas tax revenue instead of 12 months, ultimately affecting projects that following year. Plus we missed out on capturing that tax from truckers, tourists, thoses driving through on vacation etc.
It was a feel good gesture that in the long run did more harm than good.
Centrist
April 21st, 2011
5:41 pm
@ Realist – a dose of reality: As of 2007, Cushing holds 5 to 10 percent of the total U.S. crude inventory. On April 13, 2007, the now-defunct Lehman Brothers released a study which claimed that WTI Crude at Cushing is no longer an accurate gauge of world oil prices.
Supply and demand is real, and prices are so reflected. We need more domestic and non-cartel production to counter cartel oligopoly pricing.
Alicia
April 21st, 2011
5:44 pm
Did it write itself into the tax code? According to the governor’s spokesman, no one in the state did it.
Aquagirl
April 21st, 2011
5:44 pm
“Most of our domestic production of oil comes from deep wells in Gulf of Mexico.”
This interesting factoid brought to you by Centrist’s hindquarters, the center of his pure crap production.
John K
April 21st, 2011
5:48 pm
Taxed Enough Already!!! Yeeeehaaaawwwww!!!!!!!!!!!!!!!!!!!
Last Man Standing
April 21st, 2011
5:51 pm
This is just helping to get the gas prices where Hussein really wants them. Hussein has never made a secret of the fact that he thinks the U.S. pays too little for energy. In the absence of a practical alternative to the internal combustion engine for autos, he is continuing his plan of increasing fuel prices. This little 3 cent per gallon incease is insignificant compared to what Hussein has coming down the pile – aimed directly at you.
Don’t let any of this upset you rabid Hussein supporters. Be sure and vote more misery for yourself in 2012!
“For starters, Bush never said he was in favor of high gas prices. Obama, however, did:
CNBC’s John Harwood: So could the (high) oil prices help us?
Barack Obama: I think that I would have preferred a gradual adjustment. The fact that this is such a shock to American pocketbooks is not a good thing. But if we take some steps right now to help people make the adjustment, first of all by putting more money in their pockets, but also by encouraging the market to adapt to these new circumstances more rapidly, particularly U.S. automakers…
The obvious inference is that Obama doesn’t object to $4 a gallon gas per se, just how rapidly the price increased. Most Americans hate it and want gas prices to go down as rapidly as possible. Obama wants to “help people to make the adjustment” to “new circumstances.”
Angry Georgian
April 21st, 2011
5:54 pm
Get Nathan Deal and the rest of dem dam theives out of office
Last Man Standing
April 21st, 2011
5:55 pm
bob:
You checked the price of diesel lately? You increase the demand and the price will rise.
Centrist
April 21st, 2011
5:56 pm
@ Aquagirl – here is a source: http://www.reuters.com/article/2011/04/21/gulf-production-postspill-idUSN2129296320110421