Gov. Brian Kemp signed legislation on Friday suspending Georgia’s fuel tax through the end of May.
Lawmakers in both chambers of the General Assembly approved House Bill 304 without opposition to give motorists a break from high gas prices.
Gasoline prices in Georgia include a federal tax of 18.4 cents per gallon and a state tax of 29.1 cents per gallon. A number of cities and counties also levy taxes. The federal tax on diesel fuel is 24.4 cents per gallon, while the Georgian diesel tax is 32.6 cents per gallon. The measure would also reduce Georgia’s taxes on aviation fuel, LPG and other fuels including compressed natural gas.
It could be some time before consumers see relief as gas stations are now selling fuel that used to be taxed at the wholesale level.
The suspension of collections could cost the state up to $400 million, which would be used for road construction and other transportation projects. Republican Kemp plans to use some of the roughly $1.25 billion in leftover surplus from last fiscal year, in addition to $1.1 billion in state income tax refunds, to fill any gaps in transportation funding.
Kemp could extend the tax break via executive order, which would later have to be ratified by the legislature. Kemp cut gas taxes in 2021 during a pipeline shutdown, and former Gov. Nathan Deal suspended gas taxes multiple times.
US Democratic Senator Raphael Warnock of Georgia has already lobbied for the federal government to suspend collection of its gas tax in response to dissatisfaction with rising fuel prices.
Both Kemp and Warnock are standing for re-election this year.
The average price for a gallon of gasoline in the US was $4.27 as of Thursday, according to AAA. In Georgia it was $4.22. Prices have fallen over the past week as oil prices fell after spiking after the Russian invasion of Ukraine.
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