Georgia Department of Revenue

Georgia Airport Association

Georgia Motor Fuel Tax

October 16, 2015

Georgia Department of Revenue

Georgia Tax Structure

• Income Tax• Property Tax

– Annual– TAVT

• Transactional Taxes– Sales and Use Tax (retail)– Excise (wholesale/distributor)

• Motor Fuel, Alcohol, Tobacco, IRT, RETT

Georgia Department of Revenue

Motor Fuel Taxes Pre-HB 170

• Three Components – State Excise tax of 7.5 cents per gallon

• Legal incidence on the Distributor

– Prepaid State Tax (Average retail Sale Price)• 3% second motor fuel tax• 1% state sales tax

– Prepaid Local Tax• Rate based on county of delivery• Tax base- average retail sale price

Georgia Department of Revenue

Average Retail Sale Price

• Tax levied on distributor• Tax base is based on data compiled by DOE,

Oil Pricing Information Service, etc.• Adjusted bi-annually• Capped at $3.00 by HB170

Georgia Department of Revenue

Post-HB170

• Increase excise tax and eliminate prepaid state tax.– Why?

• Excise tax rates:– 26 cents per gallon for all fuel types except diesel– 29 cents per gallon for diesel– Beginning July 2016, annual adjustments based on

percentage change in US DOE fuel economy index.• Prepaid Local Tax

Georgia Department of Revenue

State Excise TaxJuly 1, 2015 – June 30, 2016

• Gasoline $0.26 Per Gal.• Diesel $0.29 Per Gal.• Aviation Gasoline $0.01 Per Gal.• L.P.G. $0.26 Per Gal.• Special Fuel $0.26 Per Gal.

– Aviation Gas rate only applies to sales to Av Gas licensees.

Georgia Department of Revenue

Prepaid Local TaxAverage Retail Price

July 1, 2015 – December 31, 2015

• Gasoline $2.350 Per/Gal. • Diesel $ 2.549 Per/Gal. • Aviation Gasoline $ 3.00 Per/Gal. • L.P.G. $ 1.954 Per/Gal. • Special Fuel $ 2.297 Per/Gal.

Georgia Department of Revenue

Georgia Department of Revenue

Relevant Tax Exemptions

• Bulk sales to licensed distributors are exempt.• Sales to duly licensed aviation gasoline dealers

exempt, except for 1c per gallon.– Sellers and consumers of Av Gas can be licensed

for this purpose.

• But: Jet fuel is now subject to 4%. (Previously exempt for all but 1% on sales to certain qualifying airlines).

Georgia Department of Revenue

Aviation Gasoline v. Jet Fuel

• “Aviation gasoline” (O.C.G.A. § 48-9-2(1))- means gasoline that is designed and sold for use solely for aviation purposes in aircraft engines.

• “Jet fuel” (Ga. Comp. R & Reg. § 560-9-1-.10(a)) means any type of fuel oil that may be used to propel aircraft powered by turbine or turboprop engines. Jet fuel does not include aviation gasoline as defined under O.C.G.A. § 48-9-2.– “Fuel Oil” is Diesel Fuel

Georgia Department of Revenue

Sales of Aviation Gasoline– 1 cent per gallon excise tax on Aviation gasoline

sold to licensed Aviation Dealers. – Sellers and consumers of aviation gasoline can be

licensed as an aviation gasoline dealer. 48-9-6(a).• Sales of aviation gasoline to a duly licensed aviation

gasoline dealer is exempt from all but 1 cent per gallon of state excise tax imposed by 48-9-3(a)(1).

• “Aviation gasoline dealer” (O.C.G.A. § 48-9-2(2)) means any person who sells or consumes aviation gasoline for aviation purposes only.

Georgia Department of Revenue

Jet Fuel

• Excise tax does not apply to the sale of fuel oils used for non-highway purposes, which includes jet fuel used to power airplanes. 48-9-3(c).

• Jet fuel is subject to the full 4% state sales tax rate. 48-8-3.1(b).– Was formerly exempt to the extent of 3%. This

partial exemption was repealed by HB 170.• Jet Fuel is subject to Prepaid Local tax.

Georgia Department of Revenue

Jet Fuel Reporting

• Beginning July 1, 2015, all sales of jet fuel must be reported by county.

• Form ST-3 has been modified to provide special codes by county so that the tax related to those sales can be identified.

Georgia Department of Revenue

Motor Fuel Tax

Questions?