That 3-cent increase in gas tax? More like a nickel – and higher still in Atlanta

Beth Brown at the Association County Commissions of Georgia has confirmed what we were told this morning: That 3-cent sales tax that kicks in on May 1 will actually be more like 5 cents, or more, once special local option sales taxes are counted.

The matter is complicated, but the state tax on gasoline is a flat 7.5 cents per gallon, plus an amount based on price – which increases if the price per gallon goes up more than 25 percent.

And that it has indeed done, which means the secondary state tax will automatically increase from 10.1 cents to 12.9 cents per gallon on May 1.

But that doesn’t count the sales tax that local governments add. Communities that levy SPLOST pennies for education and local county governments will add an average of 2.1 cents per gallon, Brown said.

So now, we’re up to 4.9 cents. And in the city of Atlanta, the automated tax hike will be more like 6 cents, because of the extra sales tax for the reconstruction of the city’s sewer system.

A spokesman for Gov. Nathan Deal has said that the situation is being monitored.

- By Jim Galloway, Political Insider

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