Link to final conference committee report version of HB 170

The Following is a Summary of House Bill 170

The Transportation Funding Act

As Summarized by Rep. Don Parsons

Part I

Creates a Special Joint Committee for tax reform, and prescribes who shall serve on the committee. The special committee will introduce one or more tax reform bills in the 2016 session of the General Assembly. The legislation introduced by the special committee will be assigned to the special committee for consideration. If the special committee approves one or more of the bills introduced, then the legislation will be sent to the House for consideration. If one or more of the bills are approved by the House, the bill or bills will be sent to the Senate for consideration.

Part II

The Department of Transportation will annually prepare and submit to the General Assembly, for approval by the House Transportation Committee and the Senate Transportation Committee, a ten year strategic plan that outlines the use of department resources for the upcoming fiscal years. Upon approval of the plan, the House Transportation Committee and the Senate Transportation Committee may make recommendations to the Appropriations Committees in the respective chambers for their consideration in developing the budget.

Part III

This section deals with the special license plate that is currently available for alternative fueled vehicles. The term “alternative fuel” is clarified to mean, “electricity. Natural gas, and propane.”

There will be a fee of $200.00, upon registration of a non-commercial alternative fueled vehicle. There will be a fee of $300.00, upon registration of a commercial vehicle. The fees will be adjusted automatically as follows:

The fees will be adjusted annually by multiplying the percentage of increase or decrease in fuel efficiency from the previous year as measured by using the average of combined miles per gallon published in the U.S. Department of Energy Fuel Economy Guide against the current fee, and the resulting increase or decrease will be added or subtracted from the fee. This preliminary fee adjustment shall then be multiplied by the increase or decrease in the Consumer Price Index percentage for the applicable year, and the result will be added or subtracted from the preliminary fee to produce the fee for the year. The first adjustment will be calculated and implemented on July 1, 2016. The Consumer Price Index will no longer be used after July 1, 2018.

“Transportation purposes” is defined to include roads, bridges, public transit, rails, airports, buses, seaports, including road, street, and bridge purposes and all accompanying infrastructure and services necessary to provide access to these transportation facilities, including general obligation debt.

The following heavy vehicles will have an annual highway impact fee to be used for transportation purposes:

(1) 15,500 lbs. up to 26,000 lbs. (1 ton or above)                   $50.00

(2) Greater than 26,001 lbs.                                              $100.00

Part IV

The Governor cannot not suspend or modify the manner of collection or the rates in the transportation legislation unless there has been a state of emergency declared.

Part V

·         The current income tax credits for low-emission and zero-emission vehicles are eliminated as of July 1, 2015.

·         The current exemption from sales tax for jet fuel is eliminated as of July1, 2015.

·         The state sales tax on motor fuel is eliminated

·         Local governing authorities may continue to collect sales tax as currently allowed for various local taxes on motor fuel, but they cannot tax on more than $3.00 per gallon. (Local governing authorities may not collect sales tax on motor fuel above a price of $3.00 per gallon)

·          The current state excise tax of 7 ½ cents per gallon on distributors who use or sell gasoline is replaced by an excise tax of 26 cents per gallon. An excise tax of 29 cents per gallon is imposed on distributors who use or sell diesel fuel.

·         The amount of the excise tax per gallon will be adjusted automatically annually as follows:

Using 2014 as a base year, the Department of Revenue will determine the average miles per gallon of all new vehicles registered in the state using the average of combined miles per gallon published in the U.S. Department of Energy Fuel Economy Guide. Beginning on July1, 2016, and each year thereafter, the Department of Revenue will calculate the average miles per gallon of all new vehicles registered in the state in the previous year. The excise tax will be multiplied by the percentage increase or decrease in fuel efficiency from the previous year, and the resulting increase or decrease shall be added or subtracted from the excise tax rate to determine the preliminary excise tax rate. Once the preliminary excise tax rate is established, it shall be multiplied by the annual percentage of increase or decrease in the Consumer Price Index. The resulting calculation shall be added to the preliminary excise tax rate, and the result of such calculation shall be the new excise tax rate for motor fuels for the next calendar year. The Consumer Price Index will no longer be used after July 1, 2018.

·         On or after July1, 2015 each hotel or innkeeper will charge a $5.00 per night fee for each calendar day a room, lodging or accommodation is rented or leased. This does not apply to extended stay rentals. Extended stay means lodging for the same customer for longer than 30 consecutive days to the same customer.

Part VI

The “Georgia Transportation Infrastructure Bank Act” (This is in current law) is amended as follows:

To determine eligibility for funds, the board will make every attempt to balance assistance among all regions of the state.

Preference may be given to projects which have local financial support.

Part VII

Under current law, sales tax collected by special transportation districts may be at the rate of 1%. HB 170 provides that the rate may be up to 1% but not more than 1%, and may be in increments of .05%. Furthermore, this legislation provides that counties have an option to impose the up to 1% sales tax for transportation purposes independently or through inter-governmental agreements with other counties. At least 30% of the revenue collected from such tax must be expended on state route projects.

If the majority of the governing bodies within a special transportation region adopt resolutions, an election for the imposition of the TIA, a 1% sales tax, or some increment of at least .05& of a 1% sales tax for the purpose of transportation purposes, may be held.

The legislation provides for the creation of 159 special districts in the state. The geographical boundary of each county corresponds with the 159 special districts created.

On or after July 1, 2015, any county that is a GRTA participant may, by following the procedures requiring a referendum, impose a special purpose local option sales tax of up to 1% for transportation purposes. If a GRTA participating county in a special transportation region chooses to impose an special purpose local option sales tax of up to 1% for transportation purposes, the special transportation district ceases to and can no longer operate as a region.

Regions in which the counties are not GRTA participants have two years, until June 30, 2015 to do a TIA. If a TIA is not done in those regions in two years, beginning on July 1, 2017 the counties in those regions can do a county special purpose local option sales tax of up to 1% for transportation purposes. Any of those counties, after July 1, 2017, if their region has not done a TIA, can also enter into a governmental agreement with a neighboring county and jointly impose a county special purpose local option sales tax of up to 1% for transportation purposes, provided they are in compliance with referendum requirements. At least 30% of the revenue from the proceeds of the tax must be used for state route projects.

END OF HB 170 SUMMARY BY REP. DON PARSONS