Refunds of Sales and Use Taxes to Credit Card Issuers

  1. Law
  2. Georgia Code
  3. Revenue and Taxation
  4. Motor Fuel and Road Taxes
  5. Motor Fuel Tax
  6. Refunds of Sales and Use Taxes to Credit Card Issuers

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  1. As used in this Code section, the term:
    1. "Credit card issuer" means the party that extends credit, through the issuance of a credit card, to the qualified governmental tax-exempt entity that purchases "motor fuel" for "highway use" as those terms are defined under Code Section 48-9-2 for a qualified governmental tax-exempt entity's exclusive use.
    2. "Qualified governmental tax-exempt entity" means a government entity that is exempt from sales and use tax under Chapter 8 of this title, or other provision of general law.
  2. In the event that a sale of motor fuel for highway use is made to a qualified governmental tax-exempt entity by means of a credit card issued by a credit card issuer to the qualified governmental tax-exempt entity when such credit card issuer invoices and bills such qualified governmental tax-exempt entity net of the applicable taxes, such credit card issuer may obtain a refund for the sales and use taxes paid on such sales.
  3. In order for a credit card issuer to be eligible to claim a refund of sales and use taxes provided under this Code section, the credit card issuer must be registered with the Internal Revenue Service under Section 4101 of the Internal Revenue Code as a credit card issuer; establish that it has not collected the tax from the qualified governmental tax-exempt entity that purchased the motor fuel; establish that it repaid the amount of the tax to the dealer in full with all applicable taxes included; and has obtained the written consent of the dealer for the allowance of the credit or refund or has otherwise made arrangements which directly or indirectly provide the dealer with reimbursement of the tax.
  4. Refunds of sales and use tax pursuant to this Code section shall be made without interest.
  5. The commissioner is authorized to promulgate rules and regulations deemed necessary in order to administer and effectuate this Code section.

(Code 1981, §48-9-10.1, enacted by Ga. L. 2009, p. 813, § 2/HB 441; Ga. L. 2013, p. 141, § 48/HB 79.)


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