Georgia’s Gasoline Tax to Rise in December

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eorgia’s tax on gasoline in will increase temporarily by 2 cents a gallon starting Dec. 1, though the hike is unlikely to last for more than a month, the Associated Press reported.

The increase is a delayed reaction to the price spikes which followed Hurricane Katrina, AP said.

The state has an excise tax of 7.5 cents per gallon which remains constant, and a sales tax of 4% per gallon, which rises or falls based on the gasoline retail price.

The sales tax is applied at the wholesale level on an average price for gasoline calculated every six months by the state’s revenue department. That cost then is passed down 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, AP reported.

Beginning Dec. 1, the tax will be applied to an adjusted average gas 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.

A Revenue Department spokesman told AP the recalculation was required under a provision of Georgia’s law requiring the department to set a new rate anytime average gas prices are at least 25% higher or lower than the previous average.

With a new calculation required in January, however, prices probably will come down because gas prices have been declining, the spokesman said.