2022-23 Suspension of Georgia Motor Fuel Taxes - FAQs
On March 18, 2022, Governor Kemp signed House Bill (HB) 304 suspending the collection of motor fuel excise tax from 5:00 PM on March 18, 2022 through 11:59 PM on May 31, 2022 (the “Suspension Period”). On December 8, 2022, the Governor issued his final executive order further extending the Suspension Period until 11:59 p.m. on January 10, 2023. At 12:00 a.m. on January 11, 2023, the motor fuel tax was reinstated.
How is the motor fuel tax calculated?
The excise tax is determined annually by a formula set forth in Georgia law, based on average miles per gallon of Georgia-registered vehicles, as adjusted for annual changes in fuel efficiency and the Consumer Price Index. This tax is collected at the distributor level and passed on to consumers. Review 2023 Motor Fuel Tax Bulletin.
Did HB 304 apply to all fuel types?
Motor fuels that were eligible for the suspension of the tax under HB 304 included all fuels subject to Georgia motor fuel excise tax imposed under O.C.G.A. § 48-9-3, including, but not limited to, gasoline, clear diesel, aviation gasoline, liquid propane gas, gasohol, ethanol, liquified natural gas, and compressed natural gas. Motor fuels sold for off-highway use, such as jet fuel and dyed diesel, are generally not subject to Georgia motor fuel excise tax.
Were distributors required to remit the excise tax on motor fuel sold during the Suspension Period?
No. Distributors should not have remitted the Georgia motor fuel excise tax on motor fuels sold during the Suspension Period.
How should I report fuel sold to non-licensed purchasers on the Motor Fuel Distributor Return for the March 2022-January 2023 period?
These sales should be reported on the Motor Fuel Distributor Return in the Georgia Tax Center (GTC) portal. The fuel sold during the Suspension Period should be reported as explained below. No tax will be remitted for this fuel. The fuel sold outside of the Suspension Period should be reported as taxable fuel as usual. (Please note: Motor fuels sold for off-highway use, such as jet fuel and dyed diesel, are generally not subject to Georgia motor fuel excise tax.)
How should I report fuel sold during the Suspension Period?
All fuel transactions occurring during the Suspension Period that are ordinarily taxable should be reported on both the Schedule of Receipts and Schedule of Disbursements worksheets: Schedule 1 (Gallons received in GA Tax Paid) and Schedule 13 (Tax Paid Fuel Exported). On the Schedule of Receipts worksheet, the “Gal received in GA-Tax Paid” option should be selected under Schedule Type. On the Schedule of Disbursements worksheet, the “Tax-paid fuel exported” option should be selected under Schedule Type. The amounts reported on both schedules should be the same. The amount from the Schedule of Receipts worksheet should be reported on Line 4 of the Gallons worksheet. The amount from the Schedule of Disbursements should be reported on Line 12 of the Gallons worksheet.
I remitted Georgia motor fuel excise tax on motor fuels sold during the Suspension Period. How can I request a refund for the tax paid?
Refunds should be requested via Georgia Tax Center.
I am a Georgia importer who purchased fuel from another state during the Suspension Period. I believe the other state has mistakenly charged origin state taxes on transactions. How do I handle this?
If you believe you have been erroneously assessed another state’s tax, you should contact the appropriate state taxing authority to inquire on your eligibility for a refund.
What did HB 304 do?
HB 304 suspended state collections of motor fuel taxes through May 31, 2022. The collection of the motor fuel excise tax levied under O.C.G.A. § 48-9-3 was suspended during the Suspension. HB 304 and subsequent executive orders by Governor Kemp saved Georgia drivers $1 billion at the gas pump in 2022. Prepaid local sales tax was not suspended.
Why was this action taken?
Due to the war in Ukraine, the average price of a gallon of gas increased from $2.59 to $4.06 between March 2021 and March 2022. This 56% increase adversely impacted Georgia taxpayers. Under the leadership of Governor Kemp and the General Assembly, the state of Georgia proactively worked to ease the burden Georgia taxpayers were feeling at the pump.
Why wasn’t the suspension extended?
Georgia law provides Governor Kemp with the emergency power to suspend or modify the collection of taxes, but that power ends upon the meeting of the Georgia General Assembly. The Georgia General Assembly began the 2023-2024 Regular Session on January 9, 2023.
Where can I find information on price-gouging?
To report a complaint: https://consumer.georgia.gov/
Is it price gouging? https://consumered.georgia.gov/ask-ed/2020-04-01/price-gouging
More on gas prices: https://consumer.georgia.gov/consumer-topics/gasoline-prices