House Passes Transportation Funding Act of 2015

ATLANTA — State Representative Jay Roberts (R-Ocilla) today announced the passage of the Transportation Funding Act of 2015, or House Bill 170. This legislation is a comprehensive package of measures that addresses Georgia’s critical transportation infrastructure needs.

“Yesterday we heard many members of our body voice their opinions and concerns over this legislation, but I think it is evident that the House understands the necessity to raise a certain amount of revenue for our transportation system,” said Rep. Roberts. “This legislation will go beyond transportation – this is a measure that will ultimately boost Georgia’s economy and create jobs across our state. As this bill now makes its way to the other chamber, I look forward to working with my Senate colleagues through the legislative process to finalize this bill.”

The provisions of HB 170, as passed by the House, include:
• The act will convert the sales tax on motor fuel to an excise tax. This excise tax will be set at 29.2 cents per gallon, which approximates the sales tax rate which has been imposed on gasoline using a weighted average of the price of gasoline over the previous four years ($3.39 per gallon total price at pump). This excise tax will be adjusted annually based on Corporate Average Fuel Economy (CAFÉ) standards and the National Highway Construction Cost Index.
• The bill removes all state sales and use tax from the sale of motor fuels and thus repeals the second motor fuel tax.
• The bill defines ‘transportation purposes’ as roads, bridges, public transit, rails, airports, buses, seaports, and all accompanying infrastructure and services necessary to provide access to these transportation facilities, including general obligation debt, revenue debt, and other multiyear obligations issued to finance such purposes.
• The bill defines ‘education transportation purposes’ as transportation necessary to move students to and from educational facilities in this state and all accompanying infrastructure and support necessary to provide safe and efficient access to and from these educational facilities.
• SPLOSTS will continue at 1 % on all motor fuel sales; upon renewal, revenues generated from motor fuels will be required to be used on transportation purposes. HOST and LOST will no longer be levied on motor fuels, but the rate on all other sales will go to 1.25 % beginning July 1, 2016. The MOST will run to its expiration, and if reauthorized by voters, will no longer be levied on motor fuels and the rate will go to 1.25 %.
• The tax credit given to commercial airlines is repealed and a provision requiring the revenue derived from the sales and use taxes on jet fuel to be used for a state aviation program or airport related purposes to the extent required by Federal law. Anything in excess of the federally required amount may be appropriated by the General Assembly for other purposes.
• Alternative fueled vehicles will pay a user fee of $200 for non-commercial and $300 for commercial vehicles each year. This fee will be adjusted annually based on the National Highway Construction Cost Index. The bill defines “Alternative Fuel” as electricity, natural gas, and propane and “Alternative Fueled Vehicle” as any vehicle fueled solely by alternative fuel.
• The tax credit for low emission or zero emission vehicles is made $0.00 for vehicles purchased or leased after July 1, 2015.
• The Georgia Transportation Infrastructure Bank may give preference to eligible projects in tier 1 and tier 2 counties. When determining eligibility, the board shall make every effort to balance any loans or other financial assistance among all regions of this state. Additionally, Preference for grants and other financial assistance may be given to eligible projects which have local financial support.

The legislation was passed by the House on Thursday, March 5, by a vote of 123-46. HB 170 will now go to the State Senate for consideration.

Representative Jay Roberts represents the citizens of District 155, which includes all of Ben Hill, Irwin, and Turner counties, and portions of Tift and Coffee counties. He was elected into the House of Representatives in 2002, and currently serves as the Chairman of the Transportation Committee. He also currently serves on the Agriculture & Consumer Affairs, Appropriations, Games, Fish, & Parks, and Rules committees.

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