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Friday, June 29, 2007

Annual tax adjustment means gas prices up

The cost of filling your gas tank has been down in recent weeks from prices that hovered around three dollars and twenty-five cents earlier this year. But, if you fill up today, you'll notice a slight increase as the state tax on gasoline goes from 15 to more than 17 cents a gallon. At his website, State Senator Chip Pearson calls the gas tax the most reliable funding mechanism for our state's transportation system. The current Georgia Motor Fuel Tax was enacted in 2003. House Bill 43 requires the state's gas tax be adjusted twice a year -- in January and July -- to reflect the cost of gasoline. So, the higher the price per gallon, the greater the motor fuel tax. A midterm adjustment is also required if average gasoline prices fluctuate more than 25 percent, as happened recently on June 1, 2007. According to a spokesperson for Triple A, statewide gasoline prices are averaging 12 cents more than a year ago.

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