Georgia gas tax suspension approved by House subcommittee
ATLANTA - A Georgia House subcommittee approved legislation to suspend state motor fuel taxes.
The introduction of HB 304 follows a push from Gov. Brian Kemp and state lawmakers to pause the tax as gas prices soar to record highs in Georgia because of Russia's invasion of Ukraine.
Officials estimate it will cost the state about $160 million per month.
The bill still needs the approval of the Georgia House and Senate.
The measure would go into effect as soon as the governor signs it and lasts through May 31.
Georgia tax revenue surplus
Kemp said a tax revenue surplus puts the state in good position to cover the losses from pausing motor fuel taxes.
Georgia ran a $3.7 billion surplus in the budget year than ended June 30, filling its rainy day fund to the legal limit and leaving $2.3 billion in additional undesignated surplus.
Kemp on Wednesday reiterated his intent to provide state income tax refunds to Georgians, $250 for single filers, $375 for single adults who head a household with dependents and $500 for married couples filing jointly.
"President Biden took office in January of 2021, and to understand why we are in this current state of record-high inflation and costs to the average American family, people can simply track his first year of misguided policy decisions," said Kemp.
Reading, PA - September 20: The fuel nozzle in a car at a gasoline pump at the Citgo gas station on Lancaster Ave in Reading, PA Monday afternoon September 20, 2021. (Photo by Ben Hasty/MediaNews Group/Reading Eagle via Getty Images)
What is the gas tax in Georgia?
Georgia collects a state excise tax of 28.7 cents per gallon, according to a January 2022 report from American Petroleum Institute. Georgians pay 55.95 center per gallon accounting for all state and federal taxes and fees.
During the Colonial Pipeline shutdown in 2021, Kemp suspended the gas tax to provide relief while the company recovered from a cyberattack.
How does Georgia's gas tax compare to other states?
Georgia's total of 55.95 cents per gallon came in lower than the national average of 57.09 cents per gallon. Georgia ranks 15th-highest among all U.S. states and Washington D.C.
California's 86.55 cents per gallon is the highest total tax figure while Alaska's 33.53 center per gallon is the lowest.
President Biden bans Russian oil imports
President Joe Biden has decided to ban Russian oil imports, toughening the toll on Russia’s economy in retaliation for its invasion of Ukraine, according to a person familiar with the matter.
"We're banning all imports of Russian oil and gas and energy. That means Russian oil will no longer be accepted at U.S. ports," the president announced on Tuesday.
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The Associated Press contributed to this report.