To ease the financial burden caused by inflation, Georgia Governor Brian Kemp has declared a state of emergency and temporarily suspended Georgia’s gas tax. That means Georgians should soon see some relief from the state’s fuel excise tax.

Kemp announced the suspension of Georgia’s gas tax on Tuesday in a press release attached to an executive order. This will come into effect at 12:00 a.m. on September 13 and will remain in effect until 11:59 p.m. on October 12, 2023. The governor says the main goal of the tax relief measure is to put money back into the pockets of Georgia’s middle-class families.

“As high prices continue to strain family budgets, hardworking Georgians deserve real relief, and that’s why today I signed an executive order to deliver the money to them directly at the pump,” Kemp said in a press release accompanying the executive order.

Subscribe to something Kiplinger’s Personal Finance

Be a smarter and more informed investor.

Save up to 74%

Sign up for Kiplinger’s free e-newsletter

Profit and prosper with the best expert advice on investing, taxes, retirement, personal finance and more – straight to your email.

Benefit and thrive with the best expert advice – straight to your email.

State of Emergency in Georgia: Gas Tax Suspended Until October

According to the press release, an August analysis from Moody’s Analytics found that people in the U.S. are spending $709 more per month than two years ago and $202 more per month compared to last year.

Georgia’s fuel tax suspension is expected to save residents about 31.2 cents per gallon on gasoline and 35 cents per gallon on diesel. According to Gov. Kemp’s office, a similar tax suspension last year resulted in Georgians saving about $1.7 billion at the pump.

Fuel tax: How much is the fuel tax in Georgia?

According to AAA, the average cost of a gallon of regular gas in Georgia is currently $3.57, a significant increase from $3.24 a year ago. This tax break could ease the financial burden on consumers who are squeezed at the pump. (Without the suspension, Georgia’s gas tax is 31.2 cents per gallon for regular gasoline and 35 cents per gallon for diesel fuel.)

With the executive order taking effect, Kemp said Georgians can expect a gradual decrease in fuel prices in the coming days.

Other state tax relief: Refund of excess taxes in Georgia

Meanwhile, many eligible Georgians have received 2023 tax refunds as the state sends nearly $1 billion in Georgia’s excess tax refunds to residents. As with the gas tax suspension, this is the second time Georgia has distributed special payments to eligible residents. (A similar initiative took place last year, when over 20 other states also returned billions of dollars in excess tax revenue to taxpayers via federal “stimulus checks.”) Many states are also sending special payments this year.

To be eligible for a refund of excess taxes in Georgia, you should have filed your tax return by the tax deadline of April 18, 2023. Or if you were granted an extension, you must file your tax return by October 16, 2023.

You must also have had a tax liability for the 2021 tax year. According to information on the state’s Excess Tax Refund website, Georgia residents (including part-year residents) and non-residents of Georgia can receive a refund of up to $500, depending on filing status.

Related content