Governor Perdue's Gas Tax Relief Approved

Decline in Gas Prices Attributed to Governor’s Decision

ATLANTA – The Georgia General Assembly today ratified Governor Perdue’s decision to suspend state motor fuel taxes for the month of September. The legislature also increased travel reimbursement rates for state employees who use their own cars on state business. Governor Perdue signed both bills into law in the House Chamber.

“As we continue to feel the impact of Hurricane Katrina, Georgians deserve a break at the gas pump and in the wallet,” said Governor Sonny Perdue. “I appreciate the members of the General Assembly for their approval of the gas tax moratorium until the end of September.”

Under Georgia law, the legislature was required to ratify the Governor’s executive order to make the gas tax relief permanent. House Bill 1EX includes exemptions for aviation fuel and diesel fuel used on and off road. An additional provision makes it a violation of the Fair Business Practices Act for a retailer to fail to pass the tax exemption on to the purchaser of fuel. This will be enforced by the Governor’s Office of Consumer Affairs. Violations will be subject to a penalty up to $5000 per violation.

According to the AAA Auto Club South, the average retail price for regular unleaded gasoline has dropped 23 cents since the gas tax moratorium was enacted. AAA attributed the fall in gas prices to Governor Perdue’s decision.

Senate Bill 1EX indexes the state travel reimbursement rate to the federal travel reimbursement rate set by the General Services Administration, which is currently 40.5 cents per mile.