2023 Motor Fuel Suspension
On October 6, 2023, Governor Brian P. Kemp signed Executive Order 10.06.23.01 renewing the suspension on the collection of motor fuel excise tax which originally began on September 13, 2023. The suspension of motor fuel excise tax is set to last from from 12:00 AM on September 13, 2023 through 11:59 PM on November 29, 2023 (the “Suspension Period”).
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What does the Executive Order do?
The Executive Order suspends state collection of motor fuel taxes through November 29, 2023. The collection of the motor fuel excise tax levied under Georgia Code Section 48-9-3 is suspended during the Suspension Period. Further, the Executive Order suspends the collection of the tax required by Georgia Code Section 48-8-30 (i.e., 4% state sales and use tax) upon the retail purchase, retail sale, rental, storage, use, or consumption of the fuel to a contract or common carrier regulated by the United States Surface Transportation Board for use exclusively in the operation of locomotives by such carrier. Prepaid local sales tax and other local taxes have not been suspended.
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Does the Executive Order suspend any other state or local Georgia taxes on motor fuel?
No. The Executive Order does not suspend any other state taxes or taxes charged by any local government.
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When will Executive Order 10.06.23.01 be effective? How long will it be suspended?
The Executive Order is effective as of October 12, 2023 at 12:00 a.m., and will be effective through November 29, 2023 at 11:59 p.m.
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Why is this action being taken?
This action is being taken due to rampant inflation negatively impacting Georgia’s economy and the social economic wellbeing of its residents as well as the benchmark oil price currently at a 10-month high, and the average price of gasoline rising more than thirty cents in Georgia over the past year. Under the leadership of Governor Brian P. Kemp and the Georgia General Assembly, the State of Georgia is working proactively to ease the burden Georgia taxpayers are feeling at the pump.
Read
Governor
Brian P. Kemp's Executive Order 09.12.23.01
for more information. -
Does the Executive Order apply to all fuel types?
Motor fuels eligible for the suspension of tax under the Executive Order include 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.
Further, the Executive Order suspends the collection of the tax required by Georgia Code Section 48-8-30 (i.e., 4% state sales and use tax) upon the retail purchase, retail sale, rental, storage, use, or consumption of the fuel to a contract or common carrier regulated by the United States Surface Transportation Board for use exclusively in the operation of locomotives by such carrier. Prepaid local sales tax and other local taxes have not been suspended.
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How is the motor fuel excise 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.
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What is the state of Georgia’s current motor fuel tax rates?
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Are distributors required to remit the excise tax on motor fuel sold during the Suspension Period?
No. Distributors should not remit Georgia motor fuel excise tax on motor fuels sold during the Suspension Period.
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How should I report fuel sold to non-licensed purchasers on the Motor Fuel Distributor Return for the Suspension 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.)
Examples
of where these items are located in the return template
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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 at https://gtc.dor.ga.gov.
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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.