(The Center Square) – The Georgia Senate unanimously passed a bill suspending the state’s motor fuel tax for 60 days.
House Bill 1199 is in response to high gas prices fueled by the conflict with Iran. It passed the House on Wednesday.
“They have obvious immediate effect on everyday Georgians,” said Rome Republican Chuck Hufstetler, who presented the bill. “We also recognize that these prices trick through the economy–higher fertilizer costs, higher food costs–and have an effect there. So we’re looking at suspending this and at the same time we’re hopeful that the ongoing original conflict, which is temporarily driving up energy prices, comes to an expeditious and successful conclusion.”
The cost for a gallon of regular unleaded gasoline was $3.77 on Thursday, up from $2.71 a month ago, according to AAA.
Georgia’s fuel tax adds about 33 cents to gasoline and 37 cents to diesel fuel, according to the Georgia Department of Revenue. The money funds statewide transportation projects.
The bill goes to Gov. Brian Kemp for his signature. Georgia has suspended its fuel tax three times in the past four years. Kemp signed a bill in 2022 that temporarily suspended the tax due to high gas prices.
The governor issued an executive order suspending them in 2023 due to inflation, and another in 2024 due to Hurricane Helene. The state took the revenue hit from the fuel tax suspension but has maintained surpluses. Kemp has used the surplus to issue tax rebates, including a $1.1 billion one this year.