**UPDATED** Georgia Fuel Tax Suspension – Border State Destination State Tax Rules
With Georgia having suspended collection of its motor fuel tax from May 11 – 15, 2021, the border states are providing information on how, if at all, this impacts their destination state rules for tax collection on exports to Georgia. We have just been advised that the border states are meeting today and may issue a joint statement. In the meantime below is what we have been advised:
Tennessee: Tennessee has revised its position that under its destination state tax rule, all removals of gasoline and diesel at the terminal rack for export to Georgia are subject to the Tennessee tax during the period the Georgia tax is suspended. Instead, the supplier can invoice the Georgia tax at $0. There are no changes to reporting requirements. The Tennessee export fee should be collected.
Florida: Florida allows a licensed exporter to purchase gasoline or diesel from a Florida terminal and export it without payment of tax if certain conditions are met, including payment of the destination state tax. During the period of Georgia’s fuel tax suspension, exporters can meet this requirement by invoicing $0 in Georgia fuel taxes and reporting the collection of same on Schedule 7b of the Florida fuel tax return. Suppliers should keep a copy of Georgia’s Executive Order suspending the collection of tax in case of audit.
Alabama: Alabama has indicated that the suspension of Georgia motor fuel taxes does not impact its destination state tax rules. Alabama’s fuel tax will have to be charged on all removals of gasoline and diesel at the terminal rack for export to Georgia during the period of the suspension. The general rule is that either Alabama or the destination state tax is collected.
North Carolina: During the period of suspension, Georgia destination state tax would not be collected. North Carolina would require a non-licensed taxpayer exporting fuel to get a temporary exporters license. This would allow the exporter to apply for a refund of North Carolina tax if it was exported to Georgia from a North Carolina bulk plant. The taxpayer would file for the refund on the GAS-1239 Motor Fuel Monthly Bulk Plant Exporter Return. In addition, G.S. 105-449.82(c) Terminal Rack Removal states, “If the motor fuel is removed for export by an unlicensed exporter, the exporter is liable for the tax on the fuel at the motor fuel rate and at the rate of the destination state.”
South Carolina: South Carolina has not issued guidance to date but anticipates having information by May 17th.