Georgia Gov. Kemp signs gas tax holiday bill

Georgia Gov. Brian Kemp signed a temporary gas tax holiday bill on Friday suspending the state’s tax on motor fuel sales until May 31, 2022.

House Bill (HB) 304, effective as of 5 p.m. March 18, would only apply to state gas taxes, a FAQ from the Georgia Department of Transportation (GDOT) said, and not to local city or county taxes.

“The average price of a gallon of gas has increased from $2.69 to $4.28 since March of 2021, a 59 percent increase,” Kemp said in a recorded video tweeted out on March 18. “Researchers are now estimating that the average American household could spend $2,000 more per year because of increased fuel costs and sky-high inflation.”

The bill was introduced by state Rep. Jodi Lott (R-122) and Sen. Chuck Hufstetler (R-52) and supported by Lt. Gov. Geoff Duncan and Rep. David Ralston, among others.

According to the GDOT, the tax applies only to fuels subject to Georgia motor fuel excise taxes, including, but not limited to, gasoline, clear diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquified natural gas, and compressed natural gas. Motor fuels sold for off-highway use, like jet fuel and dyed diesel, are not subject to the Georgia motor fuel excise tax.

The Governor’s office also reminded consumers that price gouging laws were currently in effect. According to the GDOT, for high gas prices to be considered price gouging, a two-step process must be met. First, the Governor must declare a state of emergency, and, second, the Governor must specifically state that the prices for a service or product are subject to price control.

While the public health state of emergency declared in the state expired on July 1, 2021, Gov. Kemp declared a State of Emergency for Continued COVID-19 Economic Recovery on June 30, 2021, which prohibits price gouging of goods and services necessary to support the preparation, response and recovery activities through March 27, 2022.