Red State Issues Massive Tax Break

Photo by Jean-christophe Gougeon on Unsplash

This couldn’t have come at a better time.

In a much-welcomed reprieve for Georgians, Gov. Brian Kemp signed a law suspending the state’s motor fuel tax on Friday.

In an attempt to give drivers a break from soaring gas prices, both lawmakers in the state’s upper and lower chambers of the General Assembly approved House Bill 304.

The bill, which suspends state fuel tax through the end of May 2022, knocks off 29.1 cents per gallon of fuel, leaving drivers to only pay the 18.4 cents per gallon federal tax and taxes imposed by counties and cities. The same goes for Diesel, where drivers will get a break of 32.6 cents per gallon from the state tax suspension.

The measure would also offer some relief to aviation gasoline, liquefied petroleum gas (LPG), and other fuels.

However, the measure wouldn’t provide immediate relief to drivers, as gas stations still work through the gas they purchased at the wholesale level.

The suspension is also predicted to cost the state $400 million in revenue for roads and transportation projects, something Kemp plans to eliminate the effects of by using the state’s roughly $1.25 billion in the budget surplus from last year to close the gap in transport funding.

Kemp’s move follows a call by Democratic U.S. Sen. Raphael Warnock, urging the federal government to suspend its gas tax, as discontent over fuel prices peaks.