Maryland, Georgia halt state gas taxes

by Caroline Vakil - 03/19/22 10:58 PM ET

Maryland and Georgia on Friday temporarily halted their state gas taxes to provide some relief to Americans at the pump amid a spike in fuel prices.

Maryland became the first state to enact legislation suspending gas taxes, which saves residents 36.1 cents per gallon for gasoline and 36.85 cents per gallon for diesel when Gov. Larry Hogan (R) signed legislation to halt the surcharge for 30 days.

Hogan has also previously thrown his support behind legislation suspending automatic increases to the state’s gas tax.

“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,” Hogan said 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.”

Hogan and top state legislators said last week that they were working toward 30-day gas tax suspension.

Georgia also temporarily suspended its gas tax on Friday, with the pause effective through the end of May.

“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,” Georgia Gov. Kemp (R), who is running for reelection this year, tweeted. “Though we can’t fix everything Washington has broken, we’re doing our part to lessen the impact on Georgians’ wallets.”

Governors and state legislatures in several other states are also considering moves to alleviate the impact for drivers as the U.S. sees gas prices reach new highs. The national average gas price was $4.262 per gallon on Saturday, with the country seeing that average reach a record high of $4.331 per gallon last week, according to data from AAA.

However, not all governors are in agreement over pausing the state gas taxes. Michigan Gov. Gretchen Whitmer (D) has signaled she is likely to veto legislation that would put 6-month pause on the state’s 27.2 cents per gallon state gas tax, calling for a suspension of the federal gas tax instead.