Georgia Governor Signs Bill Suspending State Gas Tax for 60 Days

The Georgia governor signed a separate bill into law on the same day authorizing a one-time special income tax rebate.

Georgia Gov. Brian Kemp delivers the State of the State address on the House floor of the state Capitol in Atlanta on Jan. 25, 2023. Alex Slitz/AP Photo

Georgia Gov. Brian Kemp signed a bill on March 20 suspending the state’s gasoline tax for 60 days, the first such move taken by a U.S. state since the U.S.–Israeli war with Iran began in late February.

The legislation, HB 1199, will temporarily suspend Georgia’s fuel taxes—33.3 cents per gallon on gasoline and 37.3 cents per gallon on diesel—for 60 days; it took effect immediately after Kemp’s approval.

The governor signed a separate bill into law on the same day, authorizing a one-time special income tax rebate of up to $250 for single filers, $375 for heads of households, and $500 for couples, according to a statement.

Eligible taxpayers in Georgia could receive the tax rebate within six to eight weeks, according to the Georgia Department of Revenue.

“Hardworking Georgians know best how to spend their money, not the government,” Kemp said in the statement announcing his approval of the two bills.

“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’s lieutenant governor, Burt Jones, said in a separate statement that the legislation would deliver nearly $1.2 billion in state income tax refunds to taxpayers.

“The two bills signed today provide significant and immediate tax relief and further our commitment to be good stewards of taxpayer dollars,” Jones said in the statement.

Georgia has sought to help residents manage rising oil costs as the national average price for a gallon of gas reached $3.91 on March 20, according to AAA.

Shipping through the Strait of Hormuz, a vital maritime chokepoint for global oil and gas shipments, has been disrupted since the United States and Israel began military operations against Iran on Feb. 28 and Tehran retaliated by firing missiles and drones at Israel and U.S. military assets and targets across Gulf nations.

White House press secretary Karoline Leavitt said on March 18 that President Donald Trump had issued a 60-day waiver of the Jones Act, a federal law that requires shipments between U.S. points to be carried on U.S.-built vessels.

Leavitt said the temporary waiver was intended to “mitigate the short-term disruptions” in the oil market as U.S.–Israeli military operations, dubbed Operation Epic Fury, in Iran continue.

“This action will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to U.S. ports for sixty days, and the Administration remains committed to continuing to strengthen our critical supply chains,” Leavitt wrote on X.

A number of countries have signaled support for keeping the Strait of Hormuz open after Trump called on nations to assist in policing the waterway, where Iranian attacks have essentially halted commercial traffic.

Leaders from multiple countries—including the UK, France, Germany, Italy, the Netherlands, Japan, Canada, South Korea, New Zealand, Denmark, Latvia, Slovenia, Estonia, Norway, Sweden, Finland, Czechia, Romania, Bahrain, and Lithuania—issued a joint statement on March 20 saying they were prepared to contribute to “appropriate efforts” to ensure safe passage through the strait.

The Strait of Hormuz is one of the world’s most critical energy chokepoints, with about 20 percent of global oil supplies passing through the waterway.