HB652: HB652 Motor fuel tax; electricity delivered by certain electric vehicle charging stations; provide exception

25 HB 652/AP House Bill 652 (AS PASSED HOUSE AND SENATE) By: Representatives Jones of the 25th, Jasperse of the 11th, Smith of the 138th, Holcomb of the 101st, and Hilton of the 48th A BILL TO BE ENTITLED AN ACT To amend an Act relating to regulation and taxation of electric ity used as motor fuel and1 electric vehicle charging stations, approved May 2, 2023 (Ga. L. 2023, p. 376/SB 146), as2 amended, so as to extend the effective date of provisions relative to regulatory authority of3 the Department of Agriculture and revenue and taxation; to amend Title 48 of the Official4 Code of Georgia Annotated, relating to revenue and taxation, so as to provide for an5 exception for collection of sales and use taxes and motor fuel taxes relative to electricity6 delivered by certain electric vehicle charging stations; to revise and provide for definitions;7 to provide for related matters; to provide for effective dates; to repeal conflicting laws; and8 for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 An Act relating to regulation and taxation of electricity used as motor fuel and electric12 vehicle charging stations, approved May 2, 2023 (Ga. L. 2023, p. 376/SB 146), as amended,13 is amended by revising subsection (b) of Section 5-1 as follows:14 H. B. 652 - 1 - 25 HB 652/AP "(b) Part II of this Act, which provides for the regulatory authority of the Department of15 Agriculture, and Part III of this Act, relating to revenue and taxation, shall become16 effective on January 1, 2027."17 SECTION 2.18 Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is19 amended in Code Section 48-8-3, relating to exemptions from sta te sales and use tax, by20 striking "or" at the end of paragraph (104), by replacing the p eriod at the end of21 paragraph (105) with "; or", and by adding a new paragraph to read as follows:22 "(106) Sale or use of exempt special fuel as such term is defined in Code Section 48-9-2."23 SECTION 3.24 Said title is further amended by revising Code Section 48-8-3.1, relating to exemptions from25 sales and use tax for motor fuels, as follows:26 "48-8-3.1.27 (a) Except as provided in subsection (b) of this Code section, sales of motor fuels as28 defined in paragraph (9) of Code Section 48-9-2 shall be exempt from the state sales and29 use taxes levied or imposed by this article.30 (b) Sales of motor fuel, other than gasoline and exempt special fuel as such term is defined31 in Code Section 48-9-2, purchased for purposes other than propelling motor vehicles on32 public highways as defined in Article 1 of Chapter 9 of this title shall be fully subject to the33 state sales and use taxes levied or imposed by this article unl ess otherwise specifically34 exempted by this article.35 (c) It is specifically declared to be the intent of the Genera l Assembly that taxation36 imposed on sales of motor fuel wholly or partially subject to t axation under this Code37 section shall not constitute motor fuel taxes for purposes of a ny provision of the38 H. B. 652 - 2 - 25 HB 652/AP Constitution providing for the automatic or mandatory appropria tion of any amount of39 funds equal to funds derived from motor fuel taxes."40 SECTION 4.41 Said title is further amended in Code Section 48-9-2, relating to definitions relative to motor42 fuel tax, by revising subparagraph (G) of paragraph (5), by revising paragraph (5.3), and by43 adding a new paragraph to read as follows:44 "(G) Consumes, uses, or sells electricity as a motor fuel throu gh an electric vehicle45 charging station for both highway and nonhighway use; provided, however, that such46 term shall not include the consumption, use, or sale of exempt special fuel;"47 "(5.3) 'Exempt special fuel' means fuel dispensed from an elect ric vehicle charging48 station in operation as of January 1, 2025, that is owned or op erated by a nonprofit49 organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code,50 that delivers electricity for no exchange of consideration or payment, and that is located51 upon a federal interstate right of way.52 (5.4) 'Export and import' means:53 (A) When motor fuels are sold for export and delivered across the boundaries of this54 state by or for the seller, such action is presumed to be an ex port from the place of55 origin and an import into the destination state or country by the seller; and56 (B) When motor fuels are purchased for export and transported across the boundaries57 of this state by or for the purchaser, such action is presumed to be an export from the58 place of origin and an import into the destination state or country by the purchaser."59 SECTION 5.60 Said title is further amended in Code Section 48-9-3, relating to levy of excise tax, rate,61 taxation of motor fuels not commonly sold or measured by gallon, rate, prohibition of tax on62 H. B. 652 - 3 - 25 HB 652/AP motor fuel by political subdivisions, exception, and exempted s ales, by revising63 paragraph (2) of subsection (a) and subdivision (b)(7)(B)(ii)(I) as follows:64 "(2) In the event any motor fuels which are not commonly sold or measured by the gallon65 or which are not otherwise provided for by this Code section ar e used in any motor66 vehicles on the public highways of this state, the commissioner may assess, levy, and67 collect a tax upon such fuels, under such regulations as the co mmissioner may68 promulgate, in accordance with and measured by the nearest power potential equivalent69 to that of one gallon of regular grade gasoline; provided, howe ver, that no tax shall be70 imposed upon exempt special fuel. Any determination by the commissioner of the power71 potential equivalent of such motor fuels shall be prima-facie c orrect. Upon each such72 quantity of such fuels used upon the public highways of this state, a tax at the same rate73 per gallon imposed on motor fuel under paragraph (1) of this subsection shall be assessed74 and collected."75 "(ii)(I) Any special fuel sold by a distributor to a purchaser who has a storage76 receptacle which has a connection to a withdrawal outlet that m ay be used for77 highway use, as defined in paragraph (8) of Code Section 48-9-2, and any special78 fuel delivered from an electric vehicle charging station, is no t exempt from the79 motor fuel and road taxes imposed by this article unless: (1) the 80 (a) The purchaser is at the time of sale a valid licensed distributor of that type of81 motor fuel;, or (2) an82 (b) The fuel is an exempt special fuel; or83 (c) An exemption certificate has been obtained on forms furnished by the84 Department of Revenue showing that there is no highway use of such fuels and the85 person obtaining such fuel is not a reseller of such fuels. Ea ch exemption86 certificate shall be valid for a period of not more than three years and shall be kept87 by the distributor as one of the records specified in Code Section 48-9-8. It shall88 be the responsibility of the purchaser to notify the distributor when the purchaser89 H. B. 652 - 4 - 25 HB 652/AP is no longer qualified for the nonhighway exemption. All applicable taxes must90 shall be charged the purchaser until the purchaser is granted a valid distributor's91 license for that type of motor fuel."92 SECTION 6.93 (a) Except as otherwise provided in subsection (b) of this sec tion, this Act shall become94 effective on January 1, 2027.95 (b) Section 1 of this Act shall become effective upon its approval by the Governor or upon96 its becoming law without such approval.97 SECTION 7.98 All laws and parts of laws in conflict with this Act are repealed.99 H. B. 652 - 5 -