Georgia fuel tax holiday once again extended

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

On Wednesday, Nov. 8, Gov. Brian Kemp announced he would extend a state of emergency authorizing a state fuel tax holiday. The tax break for gas and diesel purchases started on Sept. 13 with an Oct. 12 end date. The first extension allowed the tax break to continue through Nov. 11.

The latest extension permits the fuel tax holiday to remain in place through Nov. 29. Georgia normally collects a 31.2-cent gas tax and a 35-cent diesel tax.

Executive order

The governor said the emergency declaration is necessary due to ongoing high prices and uncertain economic conditions caused by failed policies coming out of Washington, D.C.

He added that the tax holiday helps Georgians cope with high food and travel costs through Thanksgiving.

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

As hardworking Georgia families fight through Bidenomics and prepare for Thanksgiving travel, I’ve once again extended the gas tax suspension to provide further relief.

Thank you to our partners in the General Assembly for supporting this measure. pic.twitter.com/HWx7AJDaOl

— Governor Brian P. Kemp (@GovKemp) November 8, 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.

As has been the case since the tax holiday began, 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,” an updated 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. 29 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 suspension period in Total Miles
• Exclude all miles traveled in Georgia during 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

Additional questions and information should be directed to the Motor Fuel Unit at motorfuel@dor.ga.gov or 1-877-423-6711.

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.

2022 tax relief

Kemp previously suspended state fuel tax collections in March 2022 and extended the suspension seven times through Jan. 10, 2023.

The governor said at the time the state was in a good position to provide a fuel tax holiday due to 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 remain below national average

Georgia’s average diesel price of $3.987 is about 40 cents below the national average for a gallon of on-highway diesel fuel, according to AAA. The state’s average gas price of $2.873 is about 52 cents below the national average for a gallon of regular gas. LL

More Land Line coverage of news from Georgia is available.