Deal freezes Georgia gas tax - | Chattanooga News, Weather & Sports

Deal freezes Georgia gas tax

Associated Press

ATLANTA (AP) - Gov. Nathan Deal has frozen Georgia's gas tax, preventing a tax hike that would have kicked in July 1.

Deal signed an executive order freezing the gas tax at current levels. Aides say it will save motorists an estimated $40 million in taxes.

The state gas tax had been set to rise 1.6 cents on July 1, as a result of a formula tied to fuel prices. Deal signed the order Thursday.

Deal had declined to step in and freeze the state sales tax when it rose by nearly 3 cents a gallon on May 1.

Spokesman Brian Robinson said Deal decided to act now because the state sales tax would be rising as the price of gas is falling and Georgians had already been hit with an increase in May.

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