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Fuel Tax Questions

Individuals faced with fuel tax situations may have had questions regarding the whole system. Uncertainties of fuel tax exemptions or where fuel taxes are to be paid often lead to questions like the ones answered below.

We have a tax client who inherited a private airport that sells aero fuel in what taxes are the client required to collect and do they pay them in to the state with their sales tax reporting form?

Aviation fuel is included in the Georgia Motor Fuel Tax. The motor fuel tax is charged on the sale of motor fuel by distributors that are licensed in the state of Georgia. Aviation gasoline already includes all taxes (excise and sales tax). The dealer of the airline fuel is required to remit the taxes to the state.

Is a fuel charge that is charged by a company tax deductible?

If the cost of the fuel is acquired as an expense for business then it is tax deductible. However, it is only tax deductible if it was a normal needed cost of doing business. There are some fuel costs that are used for off road business and agricultural purposes that can qualify for a tax credit. Fuel charges that a utility company might charge an individual for supplying gas or electric to a home is not tax deductible. It is a personal expense therefore not deductible.

Can an owner operator of an over the Road (OTR) driver, deduct both mileage and fuel on their tax return?

Owner operator vehicles are classified as vehicles used for hire. For the years 2010 and earlier for hire vehicles were required to deduct actual expenses. For those years the standard mileage rate was not allowed. Starting January 1, 2011 the laws were amended to allow the usage of the standard mileage rate.

If you use the standard mileage rate then you cannot deduct fuel costs. You would only be allowed to additionally deduct toll charges, vehicle loan interests, and personal property taxes on that vehicle.

Can a public school file for a license to pay their gas and diesel taxes, instead of the small gas station selling it to them. What forms would the public school have to fill out?

School districts and bus companies do have a requirement to pay the special fuel tax on low-sulfur, dyed diesel fuel that they use in licensed motor vehicles. It must be a licensed vehicle. Unlicensed vehicles are prohibited. Government units can obtain from the Department of Revenue a special fuel license that would allow them to pay the tax directly to the State. The form used to pay the tax is Form PDA-49, Special Fuel Tax Return and would need attached Schedule PDA-49G.

School Districts and Bus companies can also get the special fuel licenses but most are encouraged to pay that tax directly to the fuel supplier. The supplier would then pay the tax to the state.

If I own a commercial charter boat in Florida, am I eligible for the fuel tax to be exempt? And do I need a special form or document to show eligibility?

Individuals that use motor fuel and diesel fuel for mass transit system providers for exempt miscellaneous purposes could be entitled to a tax refund in the State of Florida. There are qualifications and requirements that can be found at

Having good information along with a clear distinction of fuel taxes can help when faced with situations that involve taxes on fuel. Experts can help answer questions about fuel tax exemptions or if owner operators can deduct mileage and fuel costs on their taxes. Get the answers fast and affordably by asking an Expert.
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