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Gas Tax Break in Georgia: See What’s New In This Rebate

Gas Tax Break
This is a representation photo showing a man in yellow jacket standing near gas pump as Georgia bills advance on Kemp income tax and gas tax break (Photo by Konstantine Trundayev on Unsplash)

Governor Brian Kemp of Georgia proposes giving millions of Georgians a one-time tax refund and gas tax break credit of up to $500 using $1 billion of the state’s $6.6 billion budget surplus. 

The Georgia state House has already approved the proposal with a vote of 170 to 2, and it will now move to the state Senate for further consideration, Yahoo! Finance said.

gas tax break

This is a representation photo showing a Chevron gas station in Tijuana, México as Georgia bills advance on Kemp income tax and gas tax breaks (Photo by Luis Ramirez on Unsplash)

Income Tax, Gas Tax Break in Georgia: Who is Eligible?

In the event that the plan is put into effect, it will be modeled on House Bill 1302, which gave Georgian taxpayers a $500 rebate the previous year. Newsbreak said this measure increased the joint filing limits for married couples to $500, head of household filers to $375, and single filers to $250. 

Residents were qualified for the compensation if they submitted tax returns in 2020 or 2021. Nonetheless, some taxpayers who filed online also received a direct transfer. The majority of taxpayers received their money in the form of a physical check handed to them. 

The governor also spoke about a $1 billion property tax relief plan that had been approved by the state House and would provide the average homeowner in Georgia a $500 rebate.

ALSO READ: Tax Refunds And Stimulus Payments May Appear To Be Junk Mail.

How Gas Tax Break Works

The Penn Wharton Budget Model (per CNBC) said the amount of money customers saved as a result of the gas tax break in Maryland, Georgia, and Connecticut varied across state. 

Up to 72% of the gas tax savings in Maryland were distributed to consumers. In Georgia, the percentage of consumer savings varied from 58% to 65%. 

Moreover, it ranged from 71% to 87% in Connecticut. The state tax on diesel fuel will actually go up by 9 cents per gallon on July 1 as a result of legislation approved in 2007 (Connecticut only applied the holiday to gasoline).

Surplus Tax

According to the AP (via Marca), the state had a similar gas tax break scheme until 2009, when it was ended. In Georgia’s proposed budget, an additional $1.1 billion of the surplus would be sent to the Department of Transportation to pay for road upkeep. 

This took place when the department’s main source of funding—the gas tax—was eliminated in Georgia last year. One hundred million dollars are also included in the budget to help regional school districts pay for the growing cost of employee health insurance.

RELATED ARTICLE: Risk On Using Tax Refunds To Pay Off Bills And Debt

 

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