In the midst of rising fuel prices and short supply, the state of Georigia has been an oasis of relative ease and comfort given the steps the state government has taken to offer relief to beleaguered motorists through the fuel tax.
One such tool was a state moratorium on its usual fuel tax. Georgia generally charges 32.6-cents-a-gallon levy on diesel and 29.1-cents-a-gallon tax on gasoline.
Under Gov. Brian Kemps’s order, all gas taxes went uncollected, an attempt to lower costs at the pump and put less pressure on all drivers.
Last week, Kemp renewed the order, moving the expiration date from June 14 to July 14, extending the tax holiday on fuel an additional month.
For truckers, of course, there are additional complicating matters when it comes to fuel tax.
Truckers operating in interstate commerce pay their fuel tax each quarter under the International Fuel Tax Agreement, a reciprocity compact between the lower 48 U.S. states and 10 Canadian provinces. IFTA determines fuel tax payments and refunds based on the jurisdictions where the product was consumed and purchased.
In a recent interview with trucking industry magazine Landline, IFTA Executive Director Carmen Martorana recently told Land Line Media that drivers wouldn’t have to pay state fuel tax if they are buying and burning the fuel in a state that is not collecting the tax.
Martorana pointed out that drivers who buy fuel in a state with a fuel tax exemption and drive in a state without an exemption would have to pay that tax out of pocket.
She added that if a driver pays taxes on fuel in one state, but then drives in a state that has a tax holiday, they can get reimbursed.
Georgia isn’t the only state to cut its fuel tax, or eliminate it entirely for a limited time to encourage more travel and purchases, as well as promote tourism and interstate commerce. Multiple other states have done the same, in part or entirely, for the same reason.
According to FreightWaves, as of this past Monday, average nationwide on-highway diesel prices stood at $5.57 a gallon, down 4 cents a gallon from a week ago but $2.32 a gallon higher than at this time in 2021, according to weekly data from the Energy Information Administration (EIA). In the New England and mid-Atlantic regions where diesel has been in short supply due to various factors, prices remain well above $6.30 a gallon.
This fuel tax moratorium should provide your fleet with a little relief at the pump, but it’s only temporary until matters improve nationwide. Still, every bit helps.
For more plans on how to address such budget crunch items and how to plan for the worst, Fleet Risk Solutions can give you help and the peace of mind of having covered eventualities should the worst arrive.
For more information on the fuel tax moratorium and its extension .
After all, knowledge can help you plan ahead for further emergencies or crises.
Or, as one 80s cartoon put it, “knowing is half the battle.”
About the Author
Logan utilizes a holistic approach to assist trucking companies with growth, and survival in one of the most volatile times in our history. A strong risk management program is critical for every business, but trucking companies are extremely susceptible to breaks in the risk management process. Maintenance violations, driver violations, breakdowns, driver turnover, and the list goes on, all have a domino effect on each other, and the cost of operating a trucking company.