Maryland, Georgia first states to suspend state gas taxes

With gas prices at near-record highs, state lawmakers across the U.S. are considering pausing the collection of gasoline taxes to help drivers in their state.

Maryland and Georgia are the first states to approve temporary suspensions of their gas taxes as fuel prices are surged following Russia’s invasion of Ukraine.

Maryland Gov. Larry Hogan (R) signed legislation on Friday to suspend gas taxes for 30 days, which will save residents 36.1 cents per gallon of gasoline and 36.85 cents per gallon of diesel.

“This bipartisan action will provide some relief from the pain at the pump and it is possible because of the prudent fiscal steps we have taken, which have resulted in a record budget surplus,” said Hogan in a statement. “This is, of course, not a cure-all, and market instability will continue to lead to fluctuations in prices, but we will continue to use every tool at our disposal to provide relief for Marylanders.”

Gas taxes are usually earmarked for road maintenance, meaning states who pause them will need to offset that elsewhere, says The Wall Street Journal. Advocates say that gas-tax suspensions are on one of the few tools states have to give drivers relief.

Goergia Gov. Brian Kemp (R) also approved legislation on Friday that would suspend the state’s gas taxes from Monday until the end of May, which will reduce prices by 29.1 cents per gallon of gasoline and 32.6 cents per gallon of diesel.

The suspension of the gasoline taxes will “ease the burden consumers are feeling at the pump,” Mr. Kemp, who is running for re-election, said in a video statement posted to Twitter. “We are doing our part to lessen the impact on your wallet.”

In the coming days, the suspension of the 29.1 cent tax on motor fuel and 32.6 cent tax on diesel will make its way to the consumer.

Though we can't fix everything Washington has broken, we're doing our part to lessen the impact on Georgians' wallets. pic.twitter.com/LfYE5HYN0T

— Governor Brian P. Kemp (@GovKemp) March 18, 2022

The national average gas price was $4.262 per gallon on Saturday, according to AAA. The average hit a record high of $4.331 per gallon last week.

Illinois, Massachusetts, Maine, Michigan, Minnesota, New York and Tennessee are also considering gas-tax suspensions, while California is considering a $400 rebate on gas for state residents.

However, not all state governors are in agreement. The Hill reports Michigan Gov. Gretchen Whitmer (D) has signaled she will likely veto legislation that would pause state gas taxes for 6 months, calling for a suspension of federal gas taxes instead.