Georgia this year overhauled transportation funding by passing HB 107, that will:
- phase out the State’s 4% sales and use tax on motor fuel
- raises the excise tax to $0.26 cents per gallon on gasoline and $0.29 per gallon on diesel, dedicated to transportation funding
- creates an up to $100 fee on heavy trucks
- eliminates the $5,000 state income tax credit for buying an electric vehicle
- total-electric car owners will now pay a $200 annual fee ($300 for commercial vehicles)
- adds an additional $5.00 per night statewide hotel/motel tax dedicated to transportation; and
- sunsets a 1% sales and use tax exemption for aviation fuel.
The impact to cities and counties is as follows:
- cap local sales and use taxes for the price of motor fuel at $3.00 per gallon
- Above $3, no local sales and use tax will be collected on that amount
- expands the ability of counties and cities to create a transportation special purpose local option sales tax
- the tax rate is to be a fractional rate of 0.05%, up to a maximum rate of 1.0%