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Gas tax rollback in effect
Sat, Sep 3, 2005
Savings will last all month By DICK PETTYS The Associated Pressand CHRIS BRENNAMANThe Brunswick NewsRonnie Raines already owed $22 Friday after pumping only 7 gallons of gasoline into his Kia Sophia at the Peaches station at U.S. 17 and the F.J. Torras Causeway.But on the assurances of Gov. Sonny Perdue and legislative leaders, Raines could be saving a little money for the rest of September.For the remainder of September, Perdue is removing the sales tax and separate fuel tax on each gallon of gasoline, a move he estimates will reduce costs by as much as 15 cents a gallon.The governor's order that took effect at midnight suspends Georgia's 7.5 cents-a-gallon excise tax and 4 percent sales tax on gasoline. It needs legislative approval to remain in effect, but with legislative leaders standing by him at an announcement Friday, that is almost guaranteed."It seems like a quick fix," Raines said. "I guess it's something until they straighten this out. But I do think it's a step in the right direction."Michael Carter is less optimistic. At current prices of $3 or more a gallon (including taxes), his Isuzu Rodeo will take roughly $40 to fill up."I think this is just a token gesture," Carter said while pumping gas. "Gas prices are going to keep going up in the future."The tax moratorium, Perdue said, may be the least the state can do. To make it stick this month, he will call legislators into special session, beginning Tuesday, to ratify his decision."We can afford and we should give Georgians this emergency tax relief," he said at a news conference announcing the decision Friday. The move comes as gas prices topped $3 per gallon this week for the first time in Georgia and other parts of the nation, triggering thousands of consumer complaints of price gouging.That run up, within minutes, came as retailers reacted to fears of shortages related to damage to oil drilling equipment and distribution systems caused by Hurricane Katrina and consumers bought frantically Thursday on rumors of shortages and rationing.Political leaders in several other states, including New York, Massachusetts, Connecticut and Pennsylvania, have either proposed or said they are considering gas tax suspensions in their states. Perdue said he was determined "to deliver short-term relief for Georgia motorists at the pumps to help Georgia families get through this temporary fuel shortage."Perdue said the state will forfeit about $75 million in tax revenue because of the moratorium, but can afford that because of its financial reserves.Overall, the post-Hurricane Katrina petroleum-supply outlook improved somewhat Friday as U.S. and European governments agreed to release 2 million barrels a day of oil and refined products from their reserves.Still, the immediately available supply of energy for automobiles, homes and airlines in East Coast and Midwest markets tightened. Some 1.8 million barrels a day of U.S. refining capacity remained shut down and it will be weeks before the extra gasoline from Europe arrives.
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