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Gas tax break takes another bite out of state revenue in June
Gas Prices
Gas prices in Statesboro and around Georgia benefitted from the suspension of the state’s gas tax, which cost the state $197 million in tax revenue for June. After dropping recently, prices are rising again due to the war in Iran. - photo by JIM HEALY/staff

ATLANTA — Georgia tax revenues fell in June, driven by a gas tax suspension and helped along by increased income tax refunds.

Net tax revenues for the month fell 6.8% compared with June 2025, according to the Georgia Department of Revenue.

The bulk of it was driven by a nearly $197 million decline in motor fuel excise tax collections, which Gov. Brian Kemp’s office attributed to his executive order extending the suspension of that tax from May 20 through June 3.

The General Assembly had previously suspended it starting March 20, as the war in Iran drove up prices at the pump.

As the expiration date approached ahead of Memorial Day, Kemp called a state of emergency to extend it. He then called lawmakers back to the Capitol for a special session, in part to retroactively approve his decision.

Last month, the state revenue department reported that motor fuel tax collections for May fell nearly $200 million compared with May 2025.

Even without the fuel tax suspension, state revenues lagged in June. Net tax revenues fell just over $215 million from June 2025. Excluding motor fuel tax changes, net tax revenues fell 0.6% for the month.

Another big driver was an increase in individual income tax refunds, up nearly $67 million, or about 71%. That contributed to a nearly $100 million decline in individual income tax collections compared to June last year.

Most eligible taxpayers also benefited from House Bill 1000, which passed unanimously, with an estimated price tag of nearly $1.2 billion. Taxpayers who filed timely state returns for 2024 and 2025 were set to receive one-time rebates of $250 for individuals, $375 for heads of household and $500 for married couples filing jointly.