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Maryland, Georgia suspend state gasoline and diesel tax

On Friday, Maryland Governor Larry Hogan signed emergency bipartisan legislation (SB1010/HB1486) to suspend immediately the state of Maryland’s gasoline and diesel tax for 30 days. This action passed both the House and Senate with unanimous support.

This emergency legislation applies to the 36.1 cents per gallon tax for gasoline, and the 36.85 cents per gallon tax for diesel fuel. The governor has submitted a supplemental budget to fund the gas tax suspension, which is expected to cost nearly $100 million.

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. 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.

—Governor Hogan

Also on Friday, Georgia Governor Brian P. Kemp signed HB 304 to suspend the state’s excise tax on motor fuel sales temporarily. The law is now in effect and will remain in effect through 31 May 2022.

Motor fuels eligible for the suspension of tax under HB 304 include all fuels subject to Georgia motor fuel excise tax imposed under O.C.G.A. § 48-9-3, including, but not limited to, gasoline, clear diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquified natural gas, and compressed natural gas. Motor fuels sold for off-highway use, such as jet fuel and dyed diesel, are generally not subject to Georgia motor fuel excise tax.

The excise tax is determined annually by a formula set forth in Georgia law, based on average miles per gallon of Georgia-registered vehicles, as adjusted for annual changes in fuel efficiency and the Consumer Price Index. This tax is collected at the distributor level and passed on to consumers.

For 2022, the gasoline state excise tax rate is $0.291 per gallon; for diesel, the rate is $0.326.



By suspending the gas tax, these states are in effect indirectly subsiding the oil companies; and, the last thing you want to do is give them more incentive to keep prices high. Better to refund the money directly to the taxpayers as needed...California got it right.

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