Aviation Fuel TaxesLogan Collins and Dave Perry

Perry Brothers Aviation Fuels, LLC

AVGAS• Federal Excise (.193)• Federal LUST (.001)• Federal Oil Spill (.0019)• GA Excise (.075 or .01 w/

valid AL License)• GA State Prepaid (.216)• GA Local Option Prepaid

(.16014)

JET• Federal Excise (.243)• Federal LUST (.001)• Federal Oil Spill (.0019)• GA Excise (.075)• GA State Prepaid (.138)• GA Local Option Prepaid

(.09489)

-OR-• GA State and County Sales

Taxes (6,7, or 8%)

Applicable Taxes by Product

GA Excise Tax

• Rate is .075 cpg on all fuels • AvGas is subject to only .01 cpg with a valid AL License-

available to all users and resellers of Aviation Gasoline• Jet Fuel is exempt if purchaser provides Licensed

Distributor with form MFD-3• Tax liability computed by multiplying net gallons by

applicable rate

GA State Prepaid Tax

• Rates released every six months

• Rates have not changed since July 1, 2014 due to executive order issued by Governor Deal

• If applicable Jet Fuel uses diesel rate

• Tax liability computed by multiplying net gallons purchased by appropriate tax rate

GA Local Option Prepaid Tax

• Rates based on average retail sales price from previous six months

• Rates computed by multiplying average retail price by county tax rate (2% or 3%)

• Ex. Sumter County

5.338 x 3% = 0.16014• Tax liability computed by

multiplying net gallons purchased by appropriate rate per gallon as computed above

Sales Tax Rates by County

Tax Remittance

• Taxes paid to GA each month

• GA Excise and GA State Prepaid are filed on Motor Fuel Distributors Return (all state taxes)

• GA Local Option Prepaid and Sales Tax from jet fuel are filed on GA Sales and Use Return

• Taxes are reported based on county of delivery

Federal Taxes

• Federal LUST- .001 cpg charged for every gallon of fuel sold in the United States

• Federal Oil Spill- .0019 cpg charged on every gallon of fuel refined in the United States

• Federal Excise Tax- .193 (AvGas) .243 Jet cpg charged on every gallon at the terminal level; .025 cpg available credit to Ultimate Vendor of Jet fuel

Federal Excise Tax Credits

• Federal Excise Tax liability for jet fuel used in non-commercial aviation is .218 cpg

• FBO will pay supplier full .243 and receive refund from IRS for .025

• 637 UA Registration required

• File form 8849 Schedule 2 to obtain refund