House Bill 219

Chair's Name: Larry O�Neal

Committee: Ways & Means

House Sponsor: Richard Royal

HB 219 provides for local prepaid motor fuel taxes to be collected in the same manner as state prepaid motor fuel taxes.  The bill provides that the same prices set out in the section on prepaid taxes at the state level shall be used to compute the prepaid tax rate for local jurisdictions by multiplying such price by the applicable rate imposed by the jurisdiction.  This price is the statewide average retail price by motor fuel type as compiled by the Energy Information Agency of the US Department of Energy, the Oil Pricing Information Service, or a similar reliable published index less taxes impose by the first motor fuel tax.  The bill also adds a new paragraph to the code section on refunds of motor fuel taxes which provides for a credit or refund in the case when a distributor purchases motor fuel that the prepaid tax was imposed on (pursuant to the code section that imposes the second local motor fuel tax), and then sells such fuel to a governmental entity that is totally or partially exempt from the tax.  The amount of the credit is the prepaid sales tax rate multiplied by the gallons of motor fuel purchased by the exempt entity.

The committee substitute received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor under the Structured Rule. 

Chairman O�Neal�s opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

HB 219 provides for local motor fuel taxes to be collected in the same manner as state motor fuel taxes, at the distributor level.  Currently, local motor fuel taxes are collected at the retail level, and there are documented problems with these retailers not remitting the taxes.

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

The bill encourages compliance, and stabilizes and augments local tax collections for our local governments.

THIS LEGISLATION:

• Reduces the Tax Burden:

Improved collections (collecting from distributors rather than retailers which do not remit as consistently) will result in more tax revenues generated.  If we collect legitimately owed taxes we can reduce tax burdens in other areas.  This reduces compliance costs. 

• Increases Personal Responsibility:

This bill encourages compliance by having distributors collect both state and local motor fuel taxes, and also assesses a level playing field for competition.

Senate Changes:

The Senate added for an exemption on sales and use tax for GA. World Congress Center Authority, Jekyll Island Authority and GA. Ports Authority. This is a revenue bill and the House moved to disagree.