Georgia Gov. Brian Kemp is taking action to alleviate the impact of soaring inflation. By suspending the excise tax on diesel and gas until October 12, he aims to provide some relief to the community. This move comes alongside the declaration of a state of emergency due to challenging economic conditions.
Residents can expect to save 35 cents per gallon on diesel and 31.2 cents per gallon on gasoline with the suspension of the excise tax.
“When the gas tax was suspended from March through December of 2022, Georgians saved about $1.7 billion at the pump,” Kemp’s office noted. He has suspended fuel taxes in the past for state residents.
Fuel prices are expected to decrease in the coming days, following a temporary tax suspension, according to the governor’s office.
“While high prices continue to hit family budgets, hardworking Georgians deserve real relief and that’s why I signed an executive order today to deliver it directly to them at the pump,” Kemp said. “Working with partners in the General Assembly, we’ll continue to help Georgians weather the economic headwinds.”
According to recent statistics from Moody’s Analytics, Americans are now spending $709 more each month compared to two years ago, and $202 more per month compared to last year.
“The benchmark oil price is currently at a 10-month high, and the average price for a gallon of gasoline has risen more than 30 cents in Georgia over the past year,” noted the emergency declaration.
As of Sept. 15, diesel prices in Georgia averaged $4.306 per gallon, while gasoline prices were $3.448. Nationally, the average per-gallon price for diesel was even higher at $4.549, with gasoline not far behind at $3.866.
In addition, the cost of everyday essentials like fuel, housing, and food has skyrocketed.
The Speaker of the House in Georgia’s General Assembly, Jon Burns, praised Governor Kemp for taking action to suspend motor fuel taxes. Burns believes that Georgia’s success is not a coincidence, but the result of policies implemented to maintain its status as the best state for business.
Fuel taxes in the state are currently suspended for certain eligible motor fuels. These include clear diesel, gasoline, aviation gasoline, liquid propane gas, gasohol, ethanol, liquefied natural gas, and compressed natural gas. It’s important to note, however, that motor fuels sold for off-highway use, such as jet fuel and dyed diesel, are typically exempt from state motor fuel excise taxes.
“Distributors should not remit Georgia motor fuel excise tax on motor fuels sold during the suspension period,” according to the Revenue Department. Any fuel delivered to a retailer before the suspension went into effect is not considered exempt from motor fuel taxes.
Motor carriers licensed with the International Fuel Tax Association (IFTA) traveling in Georgia from Sept. 13, 2023 through Oct. 12 are exempt from paying motor fuel excise tax.
During this suspension period, you can purchase qualifying motor fuel tax-free and travel nontaxable miles in Georgia. However, please note that you still need to file IFTA returns for the quarters included in the tax-free period. It is important to accurately report all fuel purchases on your IFTA returns, whether they are tax-free or tax-paid, as this information will reflect your motor carrier driver’s miles per gallon for the suspension period.
Take advantage of this opportunity to save on fuel expenses and enjoy a smoother journey in Georgia. Don’t forget to keep track of your fuel purchases and report them accordingly.
Source: Transport Topics
