Georgia's state gas tax is back after months of cheaper prices at the pump
In this photo illustration, a gas pump is filling up a vehicle at a Chevron gas station on December 05, 2022 in Houston, Texas. (Photo by Brandon Bell/Getty Images)
ATLANTA - Georgia drivers will begin paying higher prices at the pump after state motor fuel taxes returned Thursday.
Gov. Brian Kemp’s rollback of the state taxes of 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel ended at 11:59 p.m. Wednesday.
The Republican governor began waiving the taxes in September when he issued a novel legal declaration finding that high prices were an emergency. Under Georgia law, the governor can suspend tax collections during an emergency as long as state lawmakers approve the action the next time they meet. But because the General Assembly began a special session on Wednesday to discuss legislative and congressional redistricting, Kemp could not extend the waiver of the taxes past then.
Kemp has asked lawmakers to approve his action in the special session. He could also ask lawmakers to pass a law to extend the tax break. But Kemp spokesperson Garrison Douglas said Tuesday that the governor doesn’t plan to ask lawmakers to act. Douglas said it’s possible that Kemp could issue a fresh emergency declaration once the special session ends.
Douglas said Kemp was talking to legislative leaders "to decide next steps after this session and before the next session." That next regular session begins on Jan. 8. He said one issue will be whether gas prices keep falling, as they have nationwide since Kemp revived the fuel tax break in September.
The rollback aided Kemp during his reelection bid in 2022, when he signed a law suspending the gas tax with broad bipartisan support. Kemp signed seven separate extensions after that, with the state forgoing an estimated $1.7 billion in revenue from March 2022 to January 2023.
Kemp says tax relief for Georgians helps them deal with inflation that he blames on Democratic President Joe Biden, although most economists say giving consumers more money typically increases inflation as well.
The governor has been rolling back fuel taxes worth about $180 million a month at the same time that his administration has been emphasizing that overall tax collections are declining, a sign that Georgia’s economy may be slowing.
As of Thursday, Georgia drivers were paying an average of $2.79 for a gallon of unleaded gasoline, according to motorist group AAA. That's an increase of about a cent from the day before, but less than 20 cents compared to the same time in 2022. The national average for a gallon is $3.25.
Pump prices also include a federal tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel.
The Associated Press contributed to this report.