Georgia fuel tax holiday extended

Truck drivers and motorists fueling in Georgia will continue to get some relief from state fuel tax collection.

On Friday, Oct. 6, Gov. Brian Kemp extended a state of emergency authorizing a 30-day state fuel tax holiday. The tax break for gas and diesel purchases started on Sept. 12 with an Oct. 12 end date. The extension allows the tax break to continue through Nov. 11.

The state normally collects a 31.2-cent gas tax and a 35-cent diesel tax.

Executive order

The governor has said the emergency declaration is necessary to reduce the impact of “40-year-high negative economic conditions.”

“While high prices continue to hit family budgets, hardworking Georgians deserve real relief,” Kemp previously stated.

The suspension of taxes does not apply to any local sales or use taxes (including prepaid local taxes).

We’re extending Georgia’s gas tax suspension!

With 40-year high inflation thanks to Bidenomics, we’re fighting to give hardworking families relief. As a result, Georgia has one of the lowest average gas prices in the country.

More here: https://t.co/vKdealPNGj pic.twitter.com/1oWXdW9ipi

— Governor Brian P. Kemp (@GovKemp) October 6, 2023

IFTA effect

The Georgia Motor Fuel Unit reports that all motor carriers licensed with the International Fuel Tax Agreement and traveling in Georgia are exempt from motor fuel excise tax during the suspension period.

Motor carriers are able to purchase qualifying motor fuel tax-free and travel non-taxable miles in the state. IFTA returns still are required to be filed for the quarters that include the tax-free period.

“Please ensure that all fuel purchases are reported on IFTA returns to accurately reflect your miles per gallon for the suspension period,” a notice from the state reads. “Reporting should include both tax-free and tax-paid purchases.”

All miles traveled in Georgia from Sept. 13 through Nov. 11 should be reported as non-IFTA miles.

Additionally, all filers should report all miles traveled and fuel gallons purchased in Georgia for the suspension period as non-taxable miles and non-taxable gallons.

The state asks motor carriers to use the following instructions for reporting activity during the fuel tax holiday:

• Report all miles traveled in Georgia during the suspension period in total miles
• Exclude all miles traveled in Georgia during the suspension period in total taxable miles
• Report tax-free fuel gallons purchased in Georgia in total gallons
• Exclude tax-free fuel gallons purchased in Georgia in tax-paid gallons

Requests for additional information should be directed to the Motor Fuel Unit at motorfuel@dor.ga.gov or 877-423-6711.

However, it should be noted that buying tax free fuel in Georgia and running in other states that have not waived the IFTA obligations could result in owing money at the end of the quarter.

Recent actions for relief

Kemp previously suspended the state fuel tax collections in March 2022 and extended the suspension for 10 months.

The governor said at the time the state was in a good position to provide a fuel tax holiday because of a fiscally conservative approach to budgeting.

Kemp’s office reported that Georgians saved about $1.7 billion at the pump during that time period.

Georgia fuel prices below national average

The governor said the state of Georgia’s conservative budgeting allows it to make available the state fuel tax holiday.

Georgia’s average diesel price of $4.202 is about 34 cents below the national average for a gallon of on-highway diesel fuel, according to AAA. The state’s average gas price of $3.187 is about 56 cents below the national average for a gallon of regular gas.

“Our state’s average gas price is now roughly 40 cents less than it was last month,” Kemp said in prepared remarks. “With our partners in the General Assembly, we’ll keep working to put money back in the pockets of Georgia families.” LL

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