Georgia continues suspension of gasoline tax

Georgia Gov. Brian Kemp has extended the suspension of his state’s gasoline tax for .

Georgia reported a $6 billion surplus for fiscal year 2023, bringing the total balance of the state’s reserves to nearly $18.5 billion. According to the state’s Department of Revenue October revenue report released on Wednesday, net tax collections totaled $2.6 billion for the month, a decrease of $84.4 million or 3.1% compared to October 2022.

Officials said $70.5 million of October’s tax revenue changes were the result of tax collected on motor fuel before its suspension in September. 

Minus gas tax revenues, all other October net tax collections decreased by 5.7% or $154.9 million compared to October 2022, they said.

“On a fiscal year-to-date basis, total revenue collections were up 4.2% or $428.6 million from the same four-month period last year, driven mostly by the collection of the state motor fuel tax that was suspended throughout the same time period in 2022,” DOR said. “Net of motor fuel tax changes, revenues for the four months ended October 31 were down 2 percent from this time a year ago.”

State revenues are expected to dip by around 13% in fiscal 2024, according to official estimates.

Gas prices hit historic highs this year, but have recently been in slow decline.

AAA said on Nov. 9 that the national average for a gallon of gas fell four cents in a week to $3.40, following a slow but steady decline that may quicken after recent drops in the price of oil.  

“We still need to cast a wary eye on global events, which may roil the oil market and spike prices,” said Andrew Gross, AAA spokesperson. “But domestic gas prices are amid their usual seasonal swoon. Pump prices have fallen or remained flat every day since September 19.”

AAA said today’s national average of $3.40 for a gallon of gas is 30 cents less than a month ago and 40 cents less than a year ago.