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What does the suspension of the Georgia gas tax mean
A look at the relieve Georgia drivers can expect now that the state gas tax has been suspended.
ATLANTA - Gov. Brian Kemp has signed House Bill 304, which would temporarily suspend the collection of state motor vehicle taxes in the state, into law.
"I signed it as quick as the bill got to me to give Georgians relief at the pump as quickly as I could," said Gov. Kemp after signing the bill in Darien, Georgia Friday evening.
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Gov. Kemp signs bill suspending Georgia's gas tax
Gov. Brian Kemp is signing House Bill 304, which would temporarily suspend the collection of state motor vehicle taxes in the state, into law in Darien, Georgia.
The Georgia Senate voted 55-0 on Thursday to approve the bill. The measure earlier passed the state House 150-0.
"I want to commend the general assembly on how fast they got this done and for their cooperation," said Gov. Kemp.
The bill pauses the tax through May 31 after gas prices soared to record highs in Georgia following Russia's invasion of Ukraine.
The state tax on a gallon of gas is about 29 cents. But it all adds up. If you have a 15 gallon tank, it will cost $4.35 less to fill it up.
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Kemp on signing bill temporarily halting gas tax
Gov. Brian Kemp released these video remarks regarding the signing of a bill that would suspend the gas tax in Georgia through at leas the end of May. Kemp signed the bill on Friday, March 18, 2022.
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"The 29 cents is not going to completely solve the problem, but it’s a start and it’s a statement," said Senate Finance Committee Chairman Chuck Hufstetler, a Rome Republican. "It will have to be filled in from the rainy day fund, but it’s raining a big storm right now."
Officials estimate it will cost the state about $160 million per month.
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.
The measure would also abate Georgia’s taxes on aviation gasoline, liquefied petroleum gas and other fuels including compressed natural gas.
During the Colonial Pipeline shutdown in 2021, Kemp suspended the gas tax to provide relief while the company recovered from a cyberattack.
What is not covered by the suspension of the gas tax in Georgia?
The federal tax of 18.4 cents per gallon on gasoline and the federal taxes of 24.4 cents per gallon on diesel fuel are not covered under the bill.
A number of cities and counties also charge taxes.
Democratic U.S. Sen. Raphael Warnock of Georgia has already been advocating for the federal government to suspend collection of its gas tax, responding to discontent over rising fuel prices.
Both Kemp and Warnock are running for reelection this year.
When will drivers see relief at the gas pumps?
It could take some time for consumers to see relief, because gas stations now are selling fuel they were taxed on at the wholesale level.
Sen. Jen Jordan, a Sandy Springs Democrat, asked whether the bill guarantees consumers will see the decreases. Hufstetler said laws against price gouging should provide some protection.
How will Georgia offset the cost for the gas tax suspension?
Suspending collections could cost the state up to $400 million that would be used for road building and other transportation projects. The Kemp administration plans to use part of the roughly $1.25 billion in leftover surplus from the last budget year, beyond $1.1 billion in state income tax refunds, to cover any gap in transportation funding. Kemp could also dip into the state’s $4.3 billion rainy day fund.
When does the gas tax suspension end in Georgia?
When the governor signs the bill, it will run through May 31.
Byrd said Kemp could extend the tax break via executive order that would have to be ratified later by lawmakers.
What is the current average for a gallon of gas in Georgia?
The average price for a gallon of gas in the U.S. on Thursday was $4.29, according to AAA.
It was $4.24 in Georgia.
Prices have dropped slightly in the last week as oil prices have dipped slightly.
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.
The Associated Press contributed to this report.
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The Associated Press contributed to this report