Georgia Governor Suspends Gas and Diesel Taxes Amid Rising Fuel Costs

In response to the ongoing surge in fuel costs, Georgia Governor Brian Kemp signed an executive order on Tuesday to suspend state taxes on gasoline and diesel fuel temporarily. The tax suspension, which amounts to 31.2 cents per gallon on gasoline and 35 cents per gallon on diesel fuel, will take effect starting Wednesday and will remain in place until October 12.

This decision follows a previous suspension of these taxes, resulting in an estimated $1.7 billion in revenue loss over a ten-month period from March 2022 to January 2023, equating to roughly $170 million per month. Fortunately, Georgia’s financial stability allows for this tax relief, with substantial surplus cash in state accounts and a robust rainy day fund.

Kemp’s move is expected to shift the political discourse in the state, diverting attention from a grand jury indictment related to the 2020 presidential election and focusing instead on his tax-cutting efforts. He argues that these tax cuts will help Georgian residents combat inflation, although economists have different opinions on the effects of such measures.

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The suspension of gas and diesel taxes is part of the governor’s broader campaign promises, which include reducing gas, income, and property taxes, emphasizing his commitment to fiscal conservatism and differentiation from the Biden administration’s policies.

Under Georgia state law, Kemp can continue to suspend taxes as long as state lawmakers ratify his actions when they convene. State House Speaker Jon Burns has expressed support for the move, indicating legislative backing for the tax break, with the next legislative session scheduled for January.

While these tax suspensions will provide some immediate relief to Georgia drivers, it may take a few days for the impact to be reflected in pump prices. Currently, the average price of unleaded gasoline in Georgia is $3.57 per gallon, ranking 11th lowest among U.S. states, and the average diesel price is $4.35 per gallon.

Information for this story was found via the Associated Press, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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