AAA Supports New Georgia Gas Tax

Staff Report From Georgia CEO

Tuesday, June 30th, 2015

Gas prices in Georgia may be falling, but the state tax for gasoline is on the rise.

The Georgia General Assembly passed the Transportation Funding Act of 2015, which goes into effect Wednesday. The measure will convert the current sales tax on gasoline to an excise tax, which would amount to an increase in the price for a gallon of gasoline. The exact increase will depend on the price of gas and diesel, but it will likely be between 6 and 7 cents. 

“Even though the gas tax officially increases Wednesday, you likely won’t see an immediate jump in pump prices, because gas stations usually phase-in the price increase over a short period of time rather than all at once,” said Garrett Townsend, Director of Public Affairs for AAA Georgia.  “Regardless of the tax adjustment, motorists are still expected to pay much less at the pump compared to last year. In fact, the change comes at a time when gas prices are on their way back down.”

“This tax change accomplishes two important goals,” Townsend continued. “First, it protects revenue from fluctuations in the cost of gasoline. Second, it ensures that all taxes collected on gasoline are used for transportation purposes. ” 

“AAA supports the new tax as it means more money will be allocated to transportation infrastructure improvements including much needed repairs on state roads and bridges,” said Karen Morgan, manager, Public Policy, AAA – The Auto Club Group.