Georgia’s Kemp Extends Suspension of Diesel, Gas Excise Tax

Governor Says Consumers Will Get a Break at the Pump Into November
Fuel pump
Georgia's fuel tax suspension went into effect Sept. 13 and was due to expire Oct. 12 at 11:59 p.m. (Daniel Acker/Bloomberg News)

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Gov. Brian Kemp on Oct. 6 signed an executive order that extends Georgia’s excise tax suspension on diesel and gas through Nov. 11. The order extends a State of Emergency arising from high inflation and an uncertain economy.

“We’re taking action at the state level to deliver relief to hardworking Georgians fighting through Bidenflation, soaring interest rates and sky-high prices due to Bidenomics,” Kemp declared. “Our state’s average gas price is now roughly 40 cents less than it was last month. With our partners in the General Assembly, we’ll keep working to put money back in the pockets of Georgia families.”

In his announcement, Kemp blamed “irresponsible policies coming out of Washington, D.C.”

The move was acclaimed by other state officials. “I support the governor’s decision to provide financial relief to Georgians, while the White House and Congress continue to fall short on providing solutions during uncertain economic times,” said Lt. Gov. Burt Jones. “I’m proud that here in Georgia, we have a record of always putting hardworking families first.”

Georgia Gov. Brian Kemp


When the excise tax was first suspended in September, consumers were expected to save 35 cents per gallon of diesel and 31.2 cents a gallon of gasoline.

The average state tax is 32.4 cents on diesel and 32.26 cents on gas, according to Aug. 1 figures from the U.S. Energy Information Administration.

“Gov. Kemp’s proactive leadership is protecting our economy and providing relief to hardworking Georgians and their families,” said Jon Burns, speaker of the House in Georgia’s General Assembly. “While Washington does nothing, Georgia will continue to protect residents and visitors alike from crippling pain at the pump.’’

The State Department of Revenue, which collects fuel taxes, listed eligible motor fuels for the suspension of tax including clear diesel, gasoline, aviation gasoline, liquid propane gas, gasohol, ethanol, liquefied natural gas, and compressed natural gas. Motor fuels sold for off-highway use (jet fuel and dyed diesel) generally are not subject to 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.

Kemp’s order to continue the fuel tax suspension ensures the tax break, which started Sept. 13, continues a month beyond when it was set to expire Oct. 12 at 11:59 p.m.

“This action is being taken due to rampant inflation negatively impacting Georgia’s economy and the social economic well-being 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 30 cents in Georgia over the past year," the Department of Revenue stated.

The excise tax is determined annually by a formula set based on state law regarding average miles per gallon of Georgia-registered vehicles, as adjusted for annual changes in fuel efficiency and the Consumer Price Index. The excise tax is collected at the distributor level and passed along to consumers.

Motor carriers will be able to purchase qualifying motor fuel tax-free and travel nontaxable miles in Georgia during this suspension period. International Fuel Tax Association returns still must be filed for the quarters included in the tax-free period. All fuel purchases must be reported on IFTA returns to accurately reflect a motor carrier driver’s miles per gallon for the suspension period. Reporting should include both tax-free and tax-paid fuel purchases.

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