Tennessee Gov. Bill Lee on Thursday announced a proposal to suspend state and local taxes on groceries for 30 days amid the highest inflation in 40 years. Late last week, Georgia Gov. Brian Kemp signed a bill that temporarily suspended that state’s gas tax.
Maryland Gov. Larry Hogan was the first governor to pursue relief proposals last week, immediately suspending the state’s gas tax for 30 days. Kemp’s suspension in Georgia will last through May 31. Now, lawmakers in Maine, New Jersey, Pennsylvania, New York and Washington are considering suspending their state’s gas taxes.
The average price of a gallon of gasoline recently broke its all-time record, according to the American Automobile Association. The new record is $4.26 per gallon, shattering the previous record of $4.11 set in July 2008.
Lee’s proposal will be included in the 2022-2023 fiscal year budget amendment, which will be delivered to the General Assembly on Tuesday.
“As Americans see their cost-of-living skyrocket amid historic inflation,” the Republican governor said in a news release, “suspending the grocery tax is the most effective way to provide direct relief to every Tennessean. Our state has the ability to put dollars back in the pockets of hard-working Tennesseans, and I thank members of the General Assembly for their continued partnership in maintaining our fiscally conservative approach.”