Georgia’s House of Representatives voted 163-4 on Wednesday to suspend the state’s motor fuel tax for 60 days as gas prices rose to $3.73 per gallon, up more than $1 from a month earlier. The suspension was added as an amendment to House Bill 1199 and would remove 33 cents per gallon on gasoline and 37 cents per gallon on diesel fuel.

The measure now goes to the Senate. If approved there, it would go to Governor Brian Kemp.

Rep. John Carson, a Marietta Republican who presented the bill, said lawmakers viewed the measure as a response to recent fuel price increases.

Gas prices in Georgia have risen during the past month as crude oil prices increased and seasonal summer gasoline blends came into use. Nationally, the average price for regular gasoline was $3.84 per gallon, up from $2.92 a month earlier, according to AAA. Diesel prices also increased during that period.

AAA spokesperson Montrae Waiters said higher crude oil prices were a major factor behind the increase. Waiters also said oil reserve releases by the United States and other countries were expected to slow further price increases.

The United States is releasing 172 million barrels of oil from the Strategic Petroleum Reserve over four months as part of a broader International Energy Agency plan to release 400 million barrels globally.

This would be the fourth time Kemp has suspended Georgia’s fuel tax. Previous suspensions included a period from March 2022 to January 2023, another from September to November 2023, and a two-week suspension in October 2024 following Hurricane Helene.

House Speaker Jon Burns said the suspension was intended to provide relief to drivers and families.

Lawmakers said the suspension would reduce state revenue by about $170 million to $200 million per month. They said the state would be able to replace that revenue, though they did not specify how.

For a driver buying 15 gallons of gasoline, the suspension would reduce the cost of that purchase by about $4.95, based on the current gas tax rate.

Average gas prices vary across Georgia. Athens had an average price of $3.55 per gallon, followed by Gainesville at $3.54 and Augusta-Aiken at $3.50. Lower averages were reported in Rome at $3.45, Columbus at $3.42, and Warner Robins at $3.40.

House Bill 1199 was originally introduced to align Georgia’s tax code with federal changes related to low-income tax credits. The gas tax suspension was added during floor debate.

The bill does not include provisions related to taxes on tips or overtime. Carson said lawmakers were still looking for a vehicle for those measures before the end of the session.

Source: Georgia House votes to suspend gas taxes amid high gas prices | The Center Square