Republican Georgia Gov. Brian Kemp

Georgia Gov. Brian Kemp Temporarily Drops Gas Tax, Issues Emergency Order Over Rising Prices

Republican Georgia Gov. Brian Kemp signed an executive order on Tuesday that declares a state of emergency due to high inflation and suspends fuel taxes.
Republican Georgia Gov. Brian Kemp, By Nicole Littlefield, DCNF.

Republican Georgia Gov. Brian Kemp signed an executive order on Tuesday that declares a state of emergency due to high inflation and suspends fuel taxes.

To combat high inflation, Kemp signed Executive Order to temporarily suspend state taxes on diesel and motor fuel. The fuel-tax suspension is intended to help Georgians manage rising prices at the gas pump, and will take effect Wednesday and is set to end on Oct. 12, Atlanta News First reports.

“From runaway federal spending to policies that hamstring domestic energy production, all Bidenomics has done is take more money out of the pockets of the middle class,” Kemp said in a press release. “While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that’s why I signed an executive order today to deliver it directly to them at the pump.”

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The executive order focuses on motor fuel taxes, which are excise taxes on distributors, rather than sales taxes on customers. The fuel bought before the suspension takes effect is taxed, so Georgians most likely won’t see prices at the pump fall immediately, The Atlanta Journal-Constitution reports.

With historical inflation, Americans spent more than $700 per month than they were two years ago and more than $200 per month than last year. The excise tax suspension will save Georgians 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel, according to the press release.

“The motor fuel excise tax is felt at the supplier level immediately, so there’s no exact date on when the prices will go down,” press secretary for Kemp, Garrison Douglas, told the Daily Caller News Foundation. “But it historically has not taken long to feel the effects, and in some cases can be felt almost immediately.”

Georgia previously suspended motor fuel taxes from March 2022 to January 2023, which cost the government approximately $1.7 billion in revenue. However, Georgia has around $10 billion in excess cash reserves within state accounts and is expected to run a multibillion dollar surplus in the budget year, according to the AP.

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The average price for a gallon of gasoline in Georgia is $3.57, which is more than a 30 cent increase from a year ago, AAA reports. The governor’s office estimates the suspension will save Georgians about 31 cents per gallon of gas and 35 cents per gallon of diesel fuel.

“I applaud Governor Kemp’s suspension of motor fuel taxes to keep our people and our economy moving despite Washington’s inaction on rising fuel prices,” Republican state House Speaker Jon Burns said. “Georgia’s success story is no accident – it is the result of conservative policies enacted to keep Georgia the nation’s best state for business.”

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