(TheConservativeSense.org) – A report shows consumers in Georgia will maintain paying zero state tax on diesel and gasoline until a special legislature session reexamines the issue. The fuel tax reduction of 31.2 cents a gallon of gas and 35 cents a gallon of diesel was extended by Republican Governor Brian Kemp on Wednesday.
The governor of Georgia has the authority to halt tax collection in the event of a state of emergency, subject to the approval of the General Assembly at their next scheduled session. Originally set for January 8, the new date for the next meeting is now November 29.
Reports show that in September, Kemp brought back a strategy he used to win votes in 2022 by signing a measure delaying the fuel tax amid widespread backing from all parties. The state lost roughly $1.7 billion in income between March 2022 and January 2023 because Kemp signed seven extensions.
The government has been stressing the decline in tax receipts as a possible symptom of a faltering Georgian economy, while the governor is decreasing gasoline taxes by roughly $180 million each month. Even while some gasoline taxes were still pouring into state coffers despite Kemp’s September move, tax collections plummeted by around 3% in October. Taxes on fuel in Georgia primarily support road building.
If the economy doesn’t worsen and Kemp and the legislature don’t increase tax rebates, the state should rerun a surplus this year. This is due to Kemp’s decision to cap state expenditure at $5 billion lower than last year’s revenue of $37.7 billion.
Beyond that, Georgia has an extra $11 billion in excess cash in the bank.
According to AAA, the average price of a gallon of regular fuel in Georgia was $2.89 on Tuesday. Since Kemp halted the taxes, the price has dropped by 68 cents, making it the second-lowest in the country.
As gas prices stayed over $4 per gallon last year, several states implemented gas tax relief measures. Convenience shops naturally support the purpose of gas tax reduction, which is to cut prices for customers. Customers who save money at the pump are more inclined to make additional purchases in-store.
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