Georgia extends fuel tax holiday; Michigan pursues plan

May 27, 2022

Keith Goble


Action taken at two statehouses this week is intended to help cope with high fuel costs.

On Thursday, Georgia Gov. Brian Kemp acted to extend the state’s fuel tax holiday.

The state normally collects a 29.1-cent gas tax and a 32.6-cent diesel tax.

In March, the Republican governor signed into law a suspension of state fuel taxes through May 31.

Kemp said at the time the state is in a good position to provide a tax break because of a $3.7 billion budget surplus through fiscal year 2021.

An executive order signed by the governor continues the tax holiday through July 14.

A second executive order renews Georgia’s state of emergency due to supply chain disruptions.

“I’m going to respond to record-high inflation and continuing supply chain issues by empowering Georgians to keep their money in their own pockets while we keep goods flowing,” Kemp said in a news release.

Kemp added that more needs to be done to address the issue in Washington.

“While we work to do what we can on the state level to ease the burden at the gas pump, in the grocery store, and elsewhere, I will also continue to urge those on the federal level to change these failing policies, work toward greater energy independence for the country, and get our economy back to full operation.”

Kemp also signed an executive order to temporarily suspend fuel tax collections a year ago during the Colonial Pipeline shutdown.


Renewed pursuit in Michigan would suspend the state’s tax on gas and diesel for three months.

The state charges a 27.2-cent excise rate on gas and diesel. Both fuels are subject to the state’s 6% sales and use taxes.

The Senate voted 30-7 on Thursday to advance a bill to suspend tax collection from June 15 to Sept. 15. Additionally, $300 million would be provided to local governments to cover revenue lost during the tax pause.

The Senate Transportation and Infrastructure Committee approved the bill earlier in the day. SB1029 now heads to the House for further consideration.

Sen. Roger Victory, R-Hudsonville, said historic budget surpluses in the state estimated at about $3 billion make the tax break possible.

“We can responsibly afford to cover the state’s expenses using the surpluses while helping Michiganders who are suffering under the increased cost of living,” Victory stated.

Also approved by Senate lawmakers are three bills – SB972, SB973, and SB974 – to suspend the state’s sales and use taxes on motor fuel during the fuel tax holiday.

Governor pursues alternatives

In March, the Legislature approved legislation to suspend the fuel tax for six months. Gov. Gretchen Whitmer, however, vetoed the bill. Instead, she said she supported suspending the state’s sales tax on fuel.

On May 19, the Democratic governor sent a letter to state legislative leaders proposing a tax rebate plan. The plan would tap the state’s budget surplus for a one-time payment of $500 to households.

“While the causes are varied, from the invasion of Ukraine by Russia to ongoing supply chain challenges caused by the pandemic, the pain being felt by people is tangible,” Whitmer said in a news release.

IFTA effect

Pursuit at statehouses for fuel tax holidays that include diesel has had truckers asking what a tax break would mean for paying their tax through the International Fuel Tax Agreement.

IFTA Executive Director Carmen Martorana previously told Land Line Media that drivers wouldn’t have to pay state fuel tax if they are buying and burning the fuel in a state that is not collecting the tax.

Martorana said that drivers who buy fuel in a state with a fuel tax exemption and drive in a state without an exemption, drivers would have to pay that tax out of pocket.

She added that if a driver pays taxes on fuel in one state, but then drives in a state that has a tax holiday, they can get reimbursed. LL

Land Line Now Senior Correspondent Ashley Blackford contributed to this report.

More Land Line coverage of news from Georgia and Michigan.