The transportation spending bill at last will take the fast lane to the House floor, following a few more roadside repairs to gain support of local government groups.
After the Transportation Committee on Monday approved the legislation for a second time, the full House likely will consider the proposal Wednesday. House leaders say the bill would increase transportation funding by around $1 billion a year by creating a single 29.2-cent per gallon state fuel excise tax.
The committee first approved the bill Feb. 19, but it was sent back for revisions to meet objections raised by the Association County Commissioners of Georgia, Georgia Municipal Association and Georgia School Boards Association. The legislation was also roadblocked by last week’s icy weather.
“We finally have our cities and our counties and our school boards in agreement,” said Committee Chairman Jay Roberts, R-Ocilla, the bill’s author.
One change extended for a year, to July 1, 2016, the “sunset” provision on various types of local sales taxes, including LOST and E-LOST programs used for property tax rollbacks.
On that date, the rate on those programs can be bumped to 1.25 percent from 1 percent, with the taxes no longer applied to fuel. Roberts said the local governments wanted the additional year for planning.
The revised bill also returns diesel fuel to the local sales tax base for SPLOST programs, which will be allowed to continue, with gas tax revenues having to be spent for transportation.
The committee also approved an amendment by Rep. Mark Hamilton, R-Cumming, to remove the aviation fuel tax exemption for airlines, matching House Bill 175 by Rep. Earl Ehrhart, R-Powder Springs. Erhart’s bill originally applied to just Delta Air Lines, but now it would cover all carriers.
Still, including the fuel tax exemption proposal in the transportation bill would represent an ironic twist for Delta. Delta CEO Richard Anderson as president of the Metro Atlanta Chamber of Commerce spoke vehemently in favor of boosting transportation funding.
Acting Committee Chairman Jon Burns, R-Newington, ruled out a proposed amendment by Rep. Keisha Waites, D-Atlanta, to require a state “disparity study” every three years on progress in hiring female and minority contractors. The acton was taken after Department of Transportation Commissioner Russell McMurry and the DOT board sent a letter promising to look at implementing the study. Burns chaired the committee as Roberts presented the bill.
Earlier Monday, the use of highway tolls sparked a spirited debate in the Senate before passage of Senate Bill 125, which would allow the Georgia State Road and Tollway Authority to continue collecting tolls after a project’s completion and to manage traffic flow. The proposal applies to the Department of Transportation’s Northwest Corridor project along the I-75 andI-575
Author Sen. Brandon Beach, R, Alpharetta, in response to questions, said the legislation would not result in tolls on existing lanes, which he said is forbidden by federal law.
“It’s all new capacity,” Beach told InsiderAdvantage Georgia.
Steve Henson, D-Tucker, the Senate Minority Leader, asked Beach if the legislation would result in Georgians paying a tax disguised as a user fee. Beach denied Henson’s assertion that the bill would allow the DOT to use tolls to pay for maintenance work now funded by fuel excise taxes.
Senate Majority Whip Steve Gooch, R-Dahlonega, told senators the legislation is a GRTA housekeeping measure needed to keep the $1 billion I-75-I-575 project going.
Gooch, co-chairman with Roberts of the special legislative study committee on transportation, said that without tolls, sales and property taxes might have to be doubled to pay for roads, he said. “Tolling is an option for congestion relief, We haven’t seen very many other options.”
Despite the assurances that the bill wouldn’t lead to tolls on existing lanes, the Senate approved an amendment by Sen. Charlie Bethel, R-Dalton, to remove the phrase “to acquire” in two places. Bethel and others were concerned that the wording would allow GRTA to acquire an existing road and place a toll on it.
An amendment offered by Beach, which removed two sections dealing with managed lanes, was also approved. After the lengthy discussion, the Senate passed the bill 42-12, sending it to the House.
