In Georgia, the gas tax suspension continues. Residents will keep paying no state taxes on diesel and gasoline until state lawmakers start a special legislative session, reported AP News. Governor Brian Kemp extended the fuel tax rollback of 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel until November 29. It was previously intended to end November 11.
According to AP News, Kemp “signed a law suspending the gas tax with broad bipartisan support. Kemp signed seven separate extensions after that, with the state forgoing an estimated $1.7 billion in revenue from March 2022 to January 2023.”
“I’m proud this action has helped keep millions of dollars in hardworking Georgians’ pockets, and I look forward to continuing to see that impact with the Thanksgiving holiday approaching,” said Kemp in a statement.
The Georgia governor has the power to suspend the collection of taxes as long as lawmakers approve the move the next time they meet, notes AP News.
According to AP News, the next special session will take place on November 29. It is currently unclear if Kemp plans to ask lawmakers to extend the Georgia gas tax suspension during the session.
On Tuesday, Georgia drivers were paying an average of $2.89 for a gallon of unleaded gasoline, according to AAA. That was the second-lowest price of any state behind only Texas, and down 68 cents since Kemp suspended the taxes.
Pump prices also include a federal tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel.
Last year, many states enacted gas tax relief as gas prices remained above $4 per gallon. The goal of gas tax relief is to reduce costs for consumers, an intended result that convenience stores naturally support. When customers spend less money on gas, they are more likely to spend more money elsewhere, including inside the store.
However, the day that gas tax relief laws take effect, news crews eagerly visit convenience stores to compare prices. We know because we get calls from reporters. Did Maryland’s prices drop 36 cents? Did Georgia’s prices drop 29 cents? And did prices in Connecticut go down by 25 cents when the new state gas taxes took effect, to name three examples? If not, something’s wrong, right? Unfortunately, it’s not that simple.
Why not? Find out more about the benefits of lower gas prices in the NACS Convenience Corner blog post “Is Gas Tax Relief a Good Idea?”