Vol # 6, Issue 3 - January 30, 2015

General Assembly Releases Transportation Funding Plan

Legislators announced the long-anticipated Transportation Funding Act during a press conference at the State Capitol on Wednesday. This proposal was developed following several months of work by a study committee comprised of legislators and stakeholders. ACCG was represented by our president, Walton County Chairman Kevin Little, along with our policy staff who monitored the discussions and raised county concerns and recommendations about transportation infrastructure needs.
                                                         Key Provisions:

·         The LOST, HOST, SPLOST and ESPLOST collected on the sale of motor fuel will terminate once the current tax expires.

·         After the expiration of any local sales tax, the county may levy a local motor fuel excise tax up to 3 cents per gallon county wide through the adoption of an ordinance by the governing authority.

·         In addition to the 3 cents per gallon that the commission could adopt through an ordinance, a local government also could increase the rate up to 6 cents per gallon if approved in a local referendum. 

·         The above local motor fuel excise tax revenue must be dedicated to transportation purposes, which include roads, bridges, public transit, trails, airports, buses, seaports and all accompanying infrastructure and services necessary to provide access to these transportation facilities.

·         Motor fuel is exempt from state sales tax and the state excise tax on motor fuel is increased from 7.5 cents per gallon to 29.2 cents per gallon. The rate on diesel fuel is increased from 7.5 cents per gallon to 33 cents per gallon. These rates are indexed to the Corporate Average Fuel Economy (CAFÉ) standards that take into account fuel economy and the consumer price index (CPI).

·         The increased state revenues on motor fuel will increase the amount of LMIG Funds available to local governments.

·         The Transportation Infrastructure Bank will receive additional capital to make loans and grants available to local governments.

·         Owners of vehicles fueled solely by electricity, natural gas or propane will pay an annual registration fee of $200 for private vehicles and $300 for commercial vehicles.  This fee will be indexed to CPI.  It is the intent of the General Assembly to dedicate this money to funding public transit.

·         The Governor will no longer have the authority to suspend changes to the prepaid taxes on motor fuel unless a state of emergency has been declared.

ACCG encourages county officials to continue to watch for updates on the Transportation Funding Act as it moves through the General Assembly.     

This legislation has received widespread media attention following the press conference, even before the bill had been officially released. For now, ACCG will continue to evaluate the implications of this legislation and provide further information as it becomes available.


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