Amid rising energy prices, Georgia temporarily suspended state gas tax

Georgia temporarily suspended the state's gas tax. Governor Brian Kemp did not link the bill to the war with Iran in the Middle East, which is impacting energy prices globally, and hailed the move as a relief for Georgians' pocketbooks. The suspension of the tax will remain in effect for the next 60 days.

As a result of the war with Iran, the Persian country is not allowing oil tankers to pass through the Strait of Hormuz. It is the only sea passage from the Persian Gulf to the open ocean. Approximately 21% of the oil consumed worldwide passes through it, as well as 23% of the liquefied natural gas (LNG). Since the beginning of the war, the Trump Administration took some measures to guarantee the maximum possible circulation of crude oil.

In this context, Georgia passed two bills to favor the state's taxpayers. The bill, HB 1199, temporarily exempts gasoline tax of 33 cents per gallon and diesel tax of 37 cents per gallon in Georgia.

"Hardworking Georgians know best how to spend their money, not the government. That's why I'm proud to sign these bills and, along with the General Assembly, deliver meaningful tax relief on top of the other measures we've taken in recent years", Georgia Governor Kemp said in a statement.

He further stressed that the fiscal conservatism of his administration is what is making it possible to address this revenue loss for the state: "Because we budget conservatively, we can take steps like these that actually deliver on affordability issues for families in our state."

The governor also signed the HB 1000, which authorizes the return of nearly $1.2 billion in state income tax refunds for the state's citizens. Taxpayers who qualify under the law are expected to receive a refund ranging from $250 for single individuals to $500 for couples. The time frame for receiving the money is between six and eight weeks.