State Excise Tax on Motor Fuel Sales
Effective: July 1, 2016
Published: June 3, 2016
Effective July 1, 2016, the following State Excise Tax Rates must continue to be collected by the licensed distributor on all sales of motor fuel sold to any purchaser not properly licensed as a Georgia distributor. These State Excise Tax Rates have been in effect since July 1, 2015, and will not change as of July 1, 2016.
Aviation Gasoline
Sales of aviation gasoline are generally subject to a 1 cent per gallon excise tax so long as the sale is made to a licensed aviation gasoline distributor (“AL” license type). If not, then a 26 cent rate per gallon will apply to aviation gasoline.
Motor Fuels
- Motor fuels (other than diesel fuel): continue to be taxed at 26 cents per gallon.
- Diesel fuel: continues to be taxed at 29 cents per gallon.
Applicable Excise Tax Rates (July 1, 2016 – December 31, 2016):
Motor Fuel Type | State Excise Tax Rate
- Gasoline: $0.26 per gallon
- Diesel (Clear/Dyed): $0.29 per gallon
- Aviation Gasoline: $0.01 per gallon
- L.P.G.: $0.26 per gallon
- Special Fuel (includes CNG): $0.26 per gallon
Preliminary Excise Tax Rate Adjustment
Also on July 1, 2016, a “preliminary excise tax rate” will be calculated by the Department using the average miles per gallon of all new vehicles registered in Georgia in the previous year, with 2014 used as the base year.
Calculation Process:
- Multiply the current excise tax rate by the percentage change in fuel efficiency from the previous year.
- Add the resulting increase or decrease to the current excise tax rate.
- Multiply the preliminary tax rate by the annual percentage of increase or decrease in the Consumer Price Index (CPI).
- Add the result to the preliminary excise tax rate.
The sum of these calculations will be the new excise tax rate for the next calendar year.
Implementation of New Rate
- The new excise tax rate will be effective January 1, 2017.
- The new rate will be published 30 days prior to the effective date.