• Governor Deal to stop motor fuel tax increase


    ATLANTA - Governor Nathan Deal announced Tuesday that he will stop an increase in the motor fuel tax scheduled to go into effect July 1.

    The average price of a gallon of gas increased to $3.66 from $3.21 since Jan. and that increase would have resulted in a 15 percent increase in the state gas tax.

    “We’re seeing a steady rebound in Georgia’s economy, with our unemployment rate going down and state revenues heading up, but Georgians are still paying gas prices that are high by historical standards,” Deal said. “To remove this financial burden on Georgia taxpayers and businesses, I signed an executive order suspending the motor fuel tax increase set for next month. This will help cut costs for families and keep us the No. 1 place in the nation for business.”

    According to a news release, every six months, the Department of Revenue sets the motor fuel tax based on an average of prices. A recent rise in gas prices called for an increase in the motor fuel tax. According to the release, this increase was part of the regular six-month schedules in law.

    Officials said the governor has the power to suspend collection of a tax until the meeting of the General Assembly, which must ratify the suspension.  

    Next Up: