Motorists were stunned as gas prices climbed as high as $3.19 per gallon in Lincoln County last week. Fearing even higher prices, many people rushed to the pumps on Wednesday, August 31, to top off their tanks. In fact, law enforcement officials were called to control traffic at various convenience stores. In light of the recent jump in gasoline prices, Governor Sonny Perdue has signed an executive order which mandates that Georgia consumers will be exempt from the state motor fuel tax through the end of this month.

“My purpose in temporarily suspending fuel tax collection is to relieve some of the financial burden placed on Georgians by the disruptions of our fuel supply resulting from the effects of Hurricane Katrina,” said Governor Perdue. “In making this decision, I fully considered the fiscal implications. This moratorium will have no negative impact on the state budget.”

A breakdown of the state tax on motor fuel is as follows: A prepaid 7.5-cent tax is collected by the Georgia Department of Revenue on each gallon of fuel sold at the distributor level. Along with the excise tax, consumers pay an additional four-percent sales tax on each dollar’s worth of fuel sold at the retail pump. As the price of gas rises, the amount of sales tax collected also increases.

The bottom line is that with the state moratorium in place, consumers who were paying $3 per gallon at the pump will now save more than 15 cents per gallon in taxes.

Under state law, the governor’s decision to implement the fuel tax moratorium must be ratified by the General Assembly which is set to meet in special session, beginning Tuesday, September 6. At that time, the legislative body will consider ratifying the temporary gas tax moratorium as well as adjusting the amount state employees are reimbursed for official travel.

“As we take this action, I want to stress to gas station owners that I fully expect the benefits of this tax moratorium to show up at the pump and be passed directly on to consumers,” Governor Perdue stated.

Other executive orders signed recently by the governor include: An executive order to prevent price gouging on motor fuel. To report price gouging, visit the governor’s web site at www.gov.state.ga.us.

An executive order calling up members of the Georgia National Guard to assist with disaster relief efforts.

An executive order calling on state agencies to develop plans and identify resources for assisting states affected by Hurricane Katrina. For example, the Georgia Bureau of Investigation is sending 20 agents to assist the Mississippi Department of Public Safety and the Georgia Forestry Commission currently has 18 personnel deployed throughout Georgia, Alabama, Mississippi, Louisiana, and Texas to help with clean-up efforts.

Likewise, the State of Georgia has opened several shelters for evacuees in conjunction with the American Red Cross and local governments.

An executive order lifting weight restrictions on trucks coming into the state of Georgia from Florida.

Governor Perdue has also:

Requested that the DOT lift restrictions to allow trucks to travel 24 hours a day to deliver more fuel to Georgia gas stations.

Approved the use of off-road diesel fuel as a substitute for diesel fuel.

Waived gasoline regulations that require special additive gasoline in the summer months. This action will allow gasoline suppliers to bring available gasoline to Georgia to help alleviate shortages and keep prices to a minimum.

Encouraged Georgia business owners to conserve gasoline by taking advantage of telework and flexible work schedule options for employees.

For more information about the state’s efforts to lessen the burden of high gas prices and help the victims of Hurricane Katrina, visit the following web site: www.legis.state.ga.us/ legis/2005_06/house/.