Motor Fuel Tax FAQ - State of Georgia taxQ. I purchased tax paid clear diesel fuel and used some of the fuel off-highway, how can I apply for a tax refund?
A. Effective July 1, 2021 any person who makes purchases of tax paid clear diesel used for an off-highway purpose is eligible for a tax refund of 7 ½ cents per gallon state excise tax. Tax Refund Claim Form No. MFR-43 is located at the Motor Fuel Tax web site. No interest is paid on the refund and the tax refund claim must be filed within 18 months of purchase. Q. I am a licensed distributor and purchased my motor fuel in a "tax at the rack" state and paid the 4% prepaid tax rate on the fuel. I sold some of the fuel to several counties and charged them the 3% prepaid rate, how can I apply for a refund of the difference of 1%?
A. Those licensed motor fuel suppliers who purchase motor fuel with destination state Georgia, at the 4% prepaid state tax rate and make subsequent sales at the 3% prepaid state tax rate to state, county and municipal Governments, may submit a Motor Fuel Refund Claim Form MFD-33 for the difference in prepaid state tax rates. The MFD-33 is located at the Motor Fuel Tax web site. Q. Who can make tax free motor fuel sales to the U.S. Government?
A. In order to make tax free motor fuel sales to the U. S. Government the seller of such motor fuel must be licensed and bonded as a distributor for the type of motor fuel sold to the U.S. Government. Q. Is racing gasoline a taxable motor fuel?
A. No. As long as the race gas is leaded and has an octane rating of greater than 100. However, if the race gasoline used for off-highway use, the use of such fuel is subject to the 4% state sales and use tax and the applicable local option sales tax. Unleaded race gasoline, used in licensed motor vehicles, is subject to the state excise tax, prepaid state tax and all applicable local option sales taxes. Q. What is "prepaid state tax rate" and why do we have to pay this tax to our supplier?
A. The prepaid state tax became effective on January 1, 2022 and replaces the old "3% -Second Motor Fuel Tax" on the sale or use of motor fuel. Whenever a sale of motor fuel is made to a non-licensed distributor the supplier must collect the state excise tax rate of 7 ½ cents per gallon plus the applicable prepaid state tax. Whenever the state excise tax applies on motor fuel sales or use the prepaid state tax must be applied as well. The prepaid state tax rate is changed semiannually every January and July. The current prepaid state tax rates may be found at the Taxpayer Services Division/Motor Fuel Tax web site. Q. I made an overpayment on my tax return, how can I apply for a tax refund?
A. If you made an error on your tax return and overpaid the amount due, you may request a tax refund by filing an MFD-33 Motor Fuel Refund Claim Form. Once the tax refund claim form has been verified, the Motor Fuel Tax Unit will issue you a credit memorandum, which can be applied against future tax liability due the Georgia Department of Revenue. In rare situations, the Georgia Department of Revenue may issue cash refund. The tax Refund Claim Form may be located at the Taxpayer Services Division/Motor Fuel Tax web site. Q. I received a diversion number but my driver used the incorrect card and we were charged Georgia taxes, but the fuel went to South Carolina. My supplier will not give us our money back. How can I get a refund for the Georgia taxes paid?
A. If the destination state Georgia tax was collected from a tax at the rack state and then diverted to South Carolina then the purchaser must contact the new diversion state and receive a letter from that state indicating that all taxes have been on the imported product. Supporting documentation such as the diversion notice, bill of lading and any other documentation to support the transaction must be received prior the processing the refund. A credit memo or cash refund must be applied for on the MFD-33 Refund Claim Form. Q. If the 20th of the month falls on the weekend when should my return be postmarked?
A. If the due date of the tax return falls on a Saturday, Sunday or state holiday the due date of the tax return will be the next business day after the Saturday, Sunday or state holiday. The tax payment must also be received on the due date and if that date falls on a Saturday, Sunday or state holiday the next business day will be the due date for the tax payment. If you file Electronic Funds Transfer (EFT) you must allow yourself enough time for the transaction to be processed by the sending and receiving banks or financial institutions. Q. I paid the motor fuel tax twice. I paid it to my supplier and when I filed my tax return and I paid the tax again, in error. What form do I need to use to apply for a tax refund and what proof should I provide?
A. You must use the MFD-33 Refund Claim Form which can be obtained at the Taxpayer Services Division/Motor Fuel Tax web site. You must submit all motor fuel tax paid invoices from your supplier and copies of your Georgia Distributor Tax Return(s) with back-up Return & Receipt Schedules showing that the tax was paid on your monthly tax returns. In addition, you must have your supplier sign a ST-12A (Waiver of Vendors Rights) form for purchases in which they collected the motor fuel excise tax or prepaid state tax. Q. How do I pay the Local Option Sales Tax on the purchase or use of motor fuel in Georgia?
A. If you are the holder of a Sales & Use Tax License you must pay the local option sales taxes on the sale or use of motor fuel in Georgia on the Sales Tax Return (ST-3). The state excise tax, prepaid state tax and all local option sales taxes must be deducted from the gross billing amount to arrive at the net amount subject to the applicable local option sales tax percentage. If you are not the holder of a Georgia Sales Tax License it is the responsibility of your supplier to collect the applicable local option sales taxes on such motor fuel purchases. Q. Is Jet A fuel exempt from the state excise tax and prepaid state tax in Georgia?
A. Effective February 15, 2005, any purchaser of Jet A may file an Exemption Certificate (MFD-3) with their supplier indicating that the Jet A purchases are not for resale and that they are intended for jet propulsion equipment and not for on-highway purposes. Although the purchase of Jet A with an Exemption Certificate exempts that sale/use from the state excise tax and prepaid state taxes, it is subject however, to the 4% state sales tax and the applicable local option sales taxes. If the purchaser of Jet A for resale does not have a DR distributor license the state excise tax and prepaid state tax shall be collected by the supplier. In addition, local option sales taxes would apply if the purchaser does not have a valid Sales Tax License Number. Sales of Jet A by the supplier, directly in to the fixed wing aircraft does not require a distributor license or exemption certificate. Q. Is the purchase of AvGas exempt from the state excise tax and prepaid state tax?
A. In order to be exempt from all but 1 cent per gallon state excise tax, the purchaser must be the holder of a valid AL license with the Georgia Department of Revenue. In addition, the prepaid state tax and the local option sales taxes would apply to such purchases. If the purchaser of AvGas does not have a valid AL license with the Georgia Department of Revenue, the licensed supplier must collect the 7 ½ cents per gallon, prepaid state tax and any applicable local option sales taxes. Q. I filed my tax return on time but failed to take the vendor's compensation. Can I file an amended tax return and file for a tax refund?
A. You may file an amended tax return claiming the vendor's compensation which, in most cases, will result in a credit due for that account. You must file a motor fuel tax refund claim form number MFD-33 and indicate whether you want a credit memo sent to you or claim a cash refund.