As inflation and Russia’s military campaign in Ukraine drives customers to pay more at the pump, several states are temporarily suspending their gas taxes — and others may follow suit in the near future.
California lawmakers, who voted for a gas tax moratorium earlier this year, are now proposing a $400 gas tax rebate, despite the fact that the state has the highest gas tax in the country at 51 cents per gallon. Most drivers, according to lawmakers, would receive a rebate that will cover the cost of the existing gas tax for a whole year.
Other state officials, like Michigan Gov. Gretchen Whitmer, have called for the suspension of the state’s gas tax, which now stands at 6 percent.
During the weekend, the national average gas price was $4.25 a gallon.
The suspension of the gas tax has already been approved by two states.
Georgia Gov. Brian Kemp signed a law this week that would temporarily stop the state’s gas tax until the end of the month of May.
The law comes into force on Friday and will remain in place until May 31 of this year.
On ordinary petrol, the state is suspending its $0.29 cent per gallon tax, while on diesel, the state is suspending its $0.32 cent per gallon tax. According to AAA, the average gas price in Georgia on Sunday was $4.14 a gallon.
Maryland has approved a 30-day gas tax break that will begin on Friday and expire on April 16. The state was the first in the country to enact a tax suspension that was effective immediately.
Gov. Larry Hogan signed the bill to reinstate the 36-cent-per-gallon gasoline tax, despite the fact that he had argued for a lengthier suspension. Gas prices in Maryland have dropped by more than 40 cents this week, to an average of $3.86 per gallon on Sunday.
“Of course, this is not a panacea, and market volatility will continue to result in price variations,” Hogan stated in a press statement.