TAX NEWS - JUNE 2010
Georgia Tax: Perdue signs transportation sales tax bill
The legislation, three years in the making, divides Georgia into 12 regions and will ask voters during the 2012 presidential primary whether to hike the sales tax by 1 cent to pay for roads, bridges and rail projects in that part of the state. Only those regions that approve the sales tax increase would have the money to spend.
"I think this approach makes sense because it connects," Perdue said. "It connects our local communities with our economic development centers and coordinates neighbors in developing a plan that will unlock opportunities for their region and their local economy."
The governor said he plans to travel the state to campaign for the bill.
Floyd County Commission Chair Eddie Lumsden said he is not sure how much the law will improve transportation funding, since the availability will depend on regional support for a tax package.
"If the voters would approve it, it would speed up how quickly some local projects are completed," he said. "But as we go forward, we have to look at how, as a region, we decide what projects are significant for us — and then whether those projects will be embraced and approved by the voters."
Rome's David Doss, a member of the State Transportation Board, said the law provides no money for the Georgia Department of Transportation, which means medium-sized projects such as the Rome bypass will take longer and be harder to fund.
He also said a multi-region project — such as the widening of U.S. 27 — could turn into a mish-mash if voters in some regions reject the tax to fund it.
"Are we going to have a road that is four-laned, then back down to two lanes, then back to four lanes and back to two? It doesn't make any sense," Doss said.
Supporters of the bill said during the legislative session that more money is needed for infrastructure to keep and attract businesses to the state.
State Sen. Preston Smith, R-Rome, was one of six lawmakers on the conference committee that hammered out the final version of the bill.
Smith said he favored the regional approach over a blanket statewide tax, which has not worked well in other states.
"I think the key is that the voters get to decide whether they want to move forward with a project," he said. "Some regions will adopt it and I think there will be some that do not. But it's important they have the option."
After three years of trying to come up with a plan to help end some of the worst gridlock in the nation, legislators broke through a logjam on transportation at the end of this year's session.
Spending on transportation in Georgia has lagged well behind the state's explosive population growth. Georgia spends the second lowest per capita in the country on transportation, ahead of only Tennessee.
Road projects in Georgia are funded mostly with money from the state's gasoline tax, but those revenues have tumbled amid recession and increased fuel efficiency.
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