In a move that will provide relief for Georgia residents, Republican Governor Brian Kemp has extended the suspension of fuel taxes until November 29th. This means that people in Georgia will continue to be exempt from paying the state taxes on gasoline and diesel, which amount to 31.2 cents per gallon of gasoline and 35 cents per gallon of diesel.

The suspension of these taxes was originally implemented during the COVID-19 pandemic and has been extended multiple times since then. In fact, Kemp signed seven separate extensions after the initial suspension, resulting in an estimated $1.7 billion loss in revenue for the state between March 2022 and January 2023. The governor believes that this tax relief is necessary to help Georgia residents cope with the inflation that he attributes to Democratic President Joe Biden's economic policies.

However, economists argue that giving consumers more money can actually contribute to inflation. Despite this, Kemp remains committed to providing financial relief to the people of Georgia. "Thanks to our responsible approach to budgeting, we're able to deliver relief to families fighting through the disastrous effects of Bidenomics," Kemp said in a statement. "I'm proud this action has helped keep millions of dollars in hardworking Georgians' pockets and look forward to continuing to see that impact with the Thanksgiving holiday approaching."

It is unclear whether Kemp will request an extension of the tax break by law during the special session scheduled for November, or if he will declare another state of emergency after lawmakers leave and continue waiving taxes until January. A spokesperson for Kemp, Garrison Douglas, has stated that they have no information regarding the governor's intentions.

This decision to extend the fuel tax rollback comes at a time when Georgia's economy may be slowing down. Tax revenues fell by about 3% in October, even though some fuel taxes were still being collected due to Kemp's September action. The state heavily relies on fuel taxes to fund roadbuilding projects. Despite the decline in tax collections, Georgia is still on track to run a surplus this year due to Kemp setting the ceiling on state spending $5 billion below the amount collected last year. Additionally, the state has a full rainy day account and $11 billion in surplus cash.

In terms of gas prices, Georgia drivers are currently paying the second-lowest prices in the country, following Texas. On Tuesday, the average price for a gallon of unleaded gasoline in Georgia was $2.89, down 68 cents since Kemp suspended the taxes. This is in line with the national average, which has decreased by 43 cents per gallon during the same period. It's important to note that these prices include a federal tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel.

Overall, the extension of the fuel tax rollback in Georgia will provide continued relief for residents, as they will be exempt from paying state taxes on gasoline and diesel. While the economic impact of this decision remains to be seen, it is clear that Governor Kemp is committed to providing financial relief to the people of Georgia during these uncertain times.