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Georgia reduces gas tax as prices dip even lower

ATLANTA (AP) - Georgians have another reason to celebrate the New Year - a reduction in the state's gas tax.

The tax was lowered by 4 cents per gallon to 14.6 cents starting yesterday (Thursday). Gov. Sonny Perdue cut the tax to help ease costs to motorists as the country's economy slips further into recession.

The price at the pump in Georgia is at the lowest it's been in four years - an average of $1.45 a gallon for regular unleaded. It's a number that hasn't been seen since spring 2004.

The state recalculates the gas tax every six months based on the average price of gas around Georgia. The recalculation was put on hold over the summer when gas prices skyrocketed to $4 per gallon in an effort to keep the tax rate low.


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