News Alerts

Connecticut Gas Tax Suspended from April 1, 2022 through June 30, 2022

Governor Lamont signed House Bill (HB) 5501 suspending Connecticut’s excise tax on gasoline from April 1, 2022 through June 30, 2022

The Motor Vehicle Fuels Tax shall not apply to gasoline or gasohol sold or used by a distributor in this state from April 1, 2022 through June 30, 2022. The General Assembly, however, specifically stated that the provisions of subsection (a) of section 1 of H.B. No. 5501 do not apply to “propane, natural gas or diesel sold or used by a distributor in this state.”

https://portal.ct.gov/DRS/News—Press-Releases/2022/Latest-News/Fuels-Tax-Suspension

https://portal.ct.gov/-/media/DRS/Publications/TSSB/2022/TSSB-2022-3.pdf

https://portal.ct.gov/Office-of-the-Governor/News/Press-Releases/2022/03-2022/Governor-Lamont-Signs-Emergency-Legislation-Suspending-Excise-Tax-on-Gas-From-April-1-to-June-30

Georgia Fuel Tax Suspended from 5:00 PM on March 18, 2022 through 11:59 PM on May 31, 2022

Governor Kemp signed House Bill (HB) 304 suspending the collection of motor fuel excise tax from 5:00 PM on March 18, 2022 through 11:59 PM on May 31, 2022 (H. B. 304)1486)

Motor Fuels eligible for the suspension include all fuels subject to Georgia motor fuel excise tax imposed under O.C.G.A. § 48-9-3. Distributors should not remit the Georgia motor fuel excise tax on motor fuels sold during this period. HB 304 does not suspend any other state tax or taxes charged by any local government.

https://dor.georgia.gov/2022-suspension-georgia-motor-fuel-taxes-faqs

https://dor.georgia.gov/document/document/motor-fuel-policy-bulletin-2022-001/download

Maryland’s 30-day Motor Fuel Tax Suspension

On March 18, 2022, the General Assembly of Maryland and Governor Hogan instituted a 30-day motor fuel tax suspension (gas tax holiday) beginning on March 18 through April 16, 2022 (SB1010/HB1486).

The Comptroller’s office will issue refunds to retail and wholesale sellers on the tax they have already paid for the 30-day tax holiday through the use of Form 779-R. The refund advance application is due no later than May 2, 2022.

https://www.marylandtaxes.gov/gas-tax-holiday/

https://www.marylandtaxes.gov/gas-tax-holiday/docs/Maryland-Consumer-FAQ-Gas-Tax-Holiday.pdf

https://www.marylandtaxes.gov/forms/motorfuel/779-R.pdf

https://www.marylandtaxes.gov/gas-tax-holiday/docs/Maryland-Sellers-FAQ-Gas-Tax-Holiday.pdf

Ryan Strengthens Fuels Tax Practice with the Acquisition of Tax Advisory Services Group, LLC

DALLAS (Jan. 10, 2022) – Ryan, a leading global tax services and software provider, has announced the acquisition of Tax Advisory Services Group, LLC (TASG), a full-service excise tax provider based in Houston, Texas. TASG provides tax compliance and related services with a specialization in motor fuel excise taxes. They recently expanded their compliance offerings to include reporting of vape and tobacco taxes. This strategic acquisition will further strengthen Ryan’s expertise in the fuels tax area and expand service offerings in other excise-tax-related areas.

“TASG has developed vast knowledge and a stellar reputation in the motor fuels tax industry,” said Ryan Chairman and CEO G. Brint Ryan. “They are a strong complement to our existing fuels tax recovery practice and will expand the Firm’s offerings by providing a scalable fuels tax compliance platform for our clients.”

The acquisition of TASG adds a team of accomplished professionals who have experience in delivering client solutions in tax license and registration, reporting and compliance, tax controversies, tax determination and compliance software implementation, and tax process optimization. TASG also brings a significant team of business operations professionals based in the Philippines.

Oscar L. Garza and Khristine K. Espinoza, co-founders of TASG, will join Ryan as Principals in the Firm’s Tax Compliance practice and bring strong experience in U.S. federal and state motor fuel excise taxes, tax process automation, and tax systems implementation.

“We believe our team will provide significant value to existing and new clients at Ryan as they navigate the complex world of motor fuels and excise taxes,” said Oscar L. Garza. “Additionally, the dynamic work culture at Ryan was a key factor in our decision. We are excited to join such a knowledgeable and skilled group of tax professionals.”

“We are excited to bring our business operations in the Philippines to support Ryan’s accelerated growth worldwide,” said Khristine K. Espinoza. “We saw this as an excellent opportunity for TASG to be a part of a team with an unrivaled reputation in the tax industry.”

About Ryan

Ryan, an award-winning global tax services and software provider, is the largest Firm in the world dedicated exclusively to business taxes. With global headquarters in Dallas, Texas, the Firm provides an integrated suite of federal, state, local, and international tax services on a multijurisdictional basis, including tax recovery, consulting, advocacy, compliance, and technology services. Ryan is a nine-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan’s multidisciplinary team of more than 3,100 professionals and associates serves over 18,000 clients in more than 60 countries, including many of the world’s most prominent Global 5000 companies. More information about Ryan can be found at ryan.com. “Ryan” and “Firm” refer to the global organizational network and may refer to one or more of the member firms of Ryan International, each of which is a separate legal entity.

MEDIA CONTACT

Stacey Underwood
Senior Manager, Content, Communications, and Public Relations
Ryan
972.934.0022
stacey.underwood@ryan.com

Press Room link:  https://www.ryan.com/about-ryan/press-room/ryan-acquisition-tax-advisory-services-group/

IRS Issues Guidance on Implementation of Superfund Tax

The IRS has issued guidance on implementation of the Superfund Tax which is reinstated effective July 1, 2022. Notice 2021-66 (see link below to PDF), provides information on the initial list of taxable substances under IRC Section 4672(a), registration requirements to claim certain exemptions and procedural rules regarding reporting the tax. Notice 2021-66 also suspends Notice 89-61 which set down the procedure for taxpayers to request that certain substances be added or removed from the list of taxable substances.

Under IRC Section 4661, a per ton tax is imposed on all chemicals listed in that section which are sold by the manufacturer, producer or importer of such chemicals. Under IRC Section 4671, there is a tax on the sale or use of imported “taxable substances” which have not previously been taxed under either IRC Section 4611 or 4661. For the purposes of IRC Section 4671, there is a list of taxable substances in Section 4672(a)(3) as well as a supplementary list provided by the IRS. Notice 2021-66 contains the supplementary list.

Under IRC Section 4662, there are certain exemptions to the chemical tax in IRC Section 4611 which require taxpayers to obtain a “G” registration on IRS Form 637. These include an exemption from the tax for: (1) organic taxable chemicals while it is part of an intermediate hydrocarbon stream containing one or more taxable chemicals; (2) inventory exchanges or taxable chemicals. The registration requirements are only met if both parties in the transaction are properly registered and the receiving party has notified the manufacturer, producer or importer of its registration number. Activity Letter “G” is currently suspended and the Form 637 does not include it. Notice 2021-66 advises taxpayers to write in Activity Letter “G” and provide enumerated information until a revised Form 637 is released.

With regards to implementation of the Superfund Tax, Notice 2021-66 states that it should be remitted in accordance with the rules for excise taxes and reported on Form 6627 (to be revised) attached to Form 720.

Finally, Notice 2021-66 seeks input from taxpayers on whether any additional clarification or guidance is required. Comments should be submitted in writing no later than January 28, 2022.

New York Increases Prepaid Sales Tax on Motor Fuel

Effective December 1, 2021, New York has increased the tax rate for the prepaid sales tax on motor fuel. The new rates are:

Region 1 – $0.18 per gallon

Region 2 – $0.18 per gallon

Region 3 – $0.17 per gallon

Distributors should use the new rates to compute the tax held on any gasoline in inventory as of November 30, 2021. The new rates need not be used for inventory of diesel as of November 30, 2021. Full details can be found in Notice N-21-6:  https://www.tax.ny.gov/pdf/notices/n21-6.pdf