Georgia
Georgia gas tax suspension set to end, prices expected to rise
Fuel costs are displayed on a gasoline pump at an Exxon gasoline station in Washington, DC, on Might 24, 2022. (Picture by STEFANI REYNOLDS/AFP through Getty Photographs)
ATLANTA – After months of extensions, Georgia’s suspension of the state’s motor gasoline tax is about to run out on Tuesday.
Kemp had broad bipartisan assist in March when he signed a legislation suspending the gasoline tax by way of Might 31 amid hovering costs at gasoline pumps and grocery shops. Since then he has ordered seven separate extensions of the tax break, which state legislation permits so long as lawmakers ratify the motion after they reconvene in 2023.
After signing an extension in December that lasted till Tuesday, Kemp instructed throughout a state Capitol information convention that he received’t prolong it additional.
After 10 months of tax reduction on the gasoline pump, Kemp stated, “we’re going to transition away from that non permanent program.” He added: “We will’t proceed to pay what we’re doing on the gasoline tax suspension.”
Georgia’s gasoline worth usually features a federal tax of 18.4 cents per gallon and a state tax of 29.1 cents per gallon. Numerous counties and town of Atlanta additionally cost taxes. Federal taxes on diesel gasoline are 24.4 cents per gallon, whereas Georgia’s tax on diesel is 32.6 cents per gallon.
As an alternative, Kemp stated his focus will flip to looking for legislative approval of one other spherical of revenue tax rebates and a property tax break — a pair of marketing campaign guarantees anticipated to price one other $1 billion apiece.
The governor will search a second spherical of revenue tax rebates just like the $1.1 billion in funds issued this yr. The rebates gave dual-earner households $500, single adults with dependents $375 and single adults $250.
Kemp additionally hopes to revive a property tax break that was allowed to lapse in 2009 amid a state price range disaster attributable to the Nice Recession. Kemp has proposed spending one other $1 billion to save lots of what he says will likely be about $500 a yr for taxpayers with homestead exemptions.
With the gasoline tax anticipated to return into impact, costs on the pump may soar this week.
In keeping with AAA, the common worth for a gallon of normal unleaded gasoline in Georgia presently is about $2.81 – a lot decrease than the nationwide common of $3.27.
The Related Press contributed to this report.