Georgia Suspends Scheduled Increase in Fuel Tax

June 5, 2008

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Georgia Gov. Sonny Perdue signed an executive order this week suspending a scheduled increase in fuel taxes that would have taken effect on July 1.

Legislation passed in 2004 requires the Department of Revenue to use recent fuel prices to recalculate the state motor fuel and state sales taxes on fuels every six months. That percentage-based tax is converted to a per gallon rate which is readjusted every January 1 and July 1.

The suspension also freezes state motor fuel and state sales taxes on other categories of fuel, including diesel. Taxes on diesel were set to rise 4.2 cents a gallon to 16.5 cents. The suspension does not freeze or apply to any local sales and use taxes, only the state portion of the tax.

The tax will remain frozen until the Georgia General Assembly meets again. The legislature has adjourned its regular 2008 session, which means the next meeting of the General Assembly is expected to be in January 2009.

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