ATLANTA -- The sales tax on gasoline in Georgia will increase temporarily by 2 cents per gallon beginning December 1 in a delayed reaction to the price spikes which followed Hurricane Katrina, reported the Associated Press.
But state officials said Wednesday the increase is unlikely to last more than 30 days, when new computations are expected to show the figure should be lower.
Georgians pay two types of taxes on gasoline: an excise tax of 7.5 cents per gallon which remains constant, and a sales tax of 4% per gallon, which rises [image-nocss] or falls based on the price being charged for gasoline.
The sales tax is applied at the wholesale level on an average price for gasoline calculated every six months by the Georgia Department of Revenue. That cost then is passed down the supply chain to consumers.
In July, consumers were paying the sales tax on what the revenue department figured was an average sales price of $1.875. That translated at the pump to a tax of 7.5 cents per gallon, in addition to the 7.5-cents-per-gallon excise tax.
Beginning December 1, the tax will be applied to an adjusted average gasoline price of $2.402 per gallon. That means the sales tax at the pump will be 9.6 cents per gallon, plus the 7.5-cents-per-gallon excise tax.
Charles Willey, a spokesperson for the department, said the recalculation was required under a provision of state law requiring the department to set a new rate anytime average gas prices are 25% or more higher or lower than the department's previous average. With a new calculation required in January, however, prices probably will come down because gasoline prices have been declining, he said.
Click here to view the Georgia Department of Revenue Motor Fuel Tax Bulletin.
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