Kemp signs bill suspending state gas tax through May

New law could save Georgia drivers nearly 30 cents per gallon

Georgia drivers will soon get some relief from the recent rise in gas prices.

Gov. Brian Kemp on Friday signed a bill that will temporarily suspend the collection of the state fuel tax.

H.B. 304, which was unanimously passed by the General Assembly this week, will halt the collection of the state gas tax through the end of May.

However, the relief will not be felt immediately. This is because gas stations are currently operating on fuel that has already been taxed.

Gas prices in Georgia include an 18-cent federal tax as well as a 29-cent state tax. This does not include other taxes imposed by cities and counties.

Suspending the gas tax will come at a hefty cost.

Suspending collections could cost the state up to $400 million that would be used for road building and other transportation projects. The Republican Kemp plans to use part of the roughly $1.25 billion in leftover surplus from the last budget year, beyond $1.1 billion in state income tax refunds, to cover any gap in transportation funding.

It is possible that Gov. Kemp could use his executive power to further extend the tax suspension beyond May if gas prices are still expensive, but it would have to be approved by lawmakers at a later date.

Kemp is not the only Georgia leader trying to address concerns about high gas prices. U.S. Sen. Raphael Warnock (D) has co-sponsored legislation that would suspend the collection of the federal gas tax until the end of the year.

Both Kemp and Warnock are running for re-election this year.

As of Saturday, the average price for a gallon of regular unleaded gasoline in Georgia is $4.19. That’s slightly lower than the national average, $4.26.