Lawmakers race to suspend Georgia gas tax as prices spike

Georgia lawmakers are fast-tracking a plan to suspend the state gas tax as fuel prices surge amid the U.S.-Israeli war with Iran.

The state House voted 163-4 on Wednesday to suspend the tax for 60 days. The Senate could give it final approval within days. State Rep. John Carson, R-Marietta, said the move would bring Georgians “relief from the gas pump.”

“We need to provide this relief right now,” he said. “I think this will bring much needed relief to Georgians, sooner rather than later, particularly when they’re faced with such higher gas prices.”

The average price for a gallon of regular gas in Georgia is now $3.73, up more than $1 than a month ago, according to AAA. The national average stands at $3.84 a gallon, compared to $2.92 a month ago.

Georgia’s gas tax is 33 cents per gallon. It’s 37 cents per gallon for diesel. Suspending it could cost the state — and save drivers — roughly $170 million to $200 million a month. Carson said lawmakers are confident the state can “have no problem backfilling” the lost revenue.

House Speaker Jon Burns said the move “is a direct reflection of the House’s continued leadership in addressing affordability for citizens across the state.”

The idea has quickly gained traction under pressure from constituents frustrated by rising prices. Republicans have pushed for swift action, while Democrats who once criticized Gov. Brian Kemp for earlier suspensions are now faulting him for not moving faster.

The proposal surfaced abruptly, tacked onto a separate measure involving federal tax changes. Lawmakers accelerated after Kemp, who has the authority to suspend the gas tax by executive order, signaled caution.

He told The Atlanta Journal-Constitution last week he’s watching markets before acting.

“We’ve done that very effectively in the past, but they’ve been very targeted and strategic,” the governor said. “We also have not overreacted to something that potentially could be a short-term blip, so we’re going to continue to watch things.”

Kemp has suspended the gas tax three times before. The longest stretch ran from March 2022 to January 2023 after prices topped $4 a gallon. He did it again from September to November 2023 amid inflation concerns. And in October 2024 he suspended it for two weeks after Hurricane Helene.

The Governor was noncommittal on the latest measure. Carson said he’s hopeful he will get on board.