Legislative Watch 
LEGISLATIVE
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5/12/06-When Georgia’s Republican Gov. Sonny Perdue suspended collection of the state’s taxes on fuel for one month last fall after Hurricane Katrina, the state’s Democratic leaders accused him of a publicity stunt. The tax break saved consumers about 15 cents per gallon.
Now, as prices at the pump are again booming, those same lawmakers are calling for the governor to once again take action.
Some Democratic lawmakers are calling for a 60-day moratorium on the state’s excise tax.
Perdue spokesman Dan McLagan said the governor is keeping an eye on fuel prices and has not ruled out suspending the tax again if prices don’t settle down. The earliest something could be done is July 1, the start of the new fiscal year, because the current year’s revenues have already been allocated, The Associated Press reported.
The September 2005 tax holiday cost Georgia about $55 million in lost revenues, Atlanta’s WXIA-TV reported. The tax break also temporarily removed the IFTA obligation on miles truckers ran in the state.
Supporters say the state’s surplus funds this year could cover losses for another tax break.
Perdue said that lofty tax receipts have helped the state accumulate a $500 million surplus, The AP reported. Democrats said the surplus is closer to $1 billion.
To invoke a tax break this year, Perdue would need to call lawmakers back to the capitol for a special session.
