Georgia Governor Cuts Jet Fuel Sales Tax

Georgia Governor Nathan Deal announced Monday he had signed an executive order to halt the collection of sales tax on jet fuel starting Wednesday.

According to The Atlanta Journal-Constitution, government officials originally considered dropping the four-percent tax earlier this year, but voted to leave the legislation in place after Atlanta-based Delta Air Lines came under fire for stopping a discount program with the National Rifle Association.

Georgia’s tax on jet fuel was one of the highest in the country, but the decision to cut it until the 2019 General Assembly convenes in January puts airlines in line with carriers in other states that impose little or no tax on jet fuel, such as Florida, New York and Texas.

Delta CEO Ed Bastian released a statement on the Governor Deal’s executive order:

“Delta wants to thank Governor Deal for his steps to ensure that the state of Georgia will remain competitive in the global economy,” Bastian said. “With 33,000 employees in Georgia, we are honored to call this our home state, and proud of the $58 billion in economic impact that Hartsfield-Jackson Atlanta International Airport creates statewide every year. The savings will allow us to invest additional flights into Georgia in the years to come. We look forward to continued growth of our service in Georgia and the job creation that will accompany it.”

Airlines for America (A4A) CEO Nicholas E. Calio also released a statement on the tax break:

“We applaud Governor Deal’s decision to issue an executive order that encourages the airline industry to continue to invest in the state’s future, leading to new and diverse flight options, lower fares, and greater opportunities for job growth at the world’s busiest airport,” Calio said “These improvements will benefit everyone who flies.”

A4A points out that when North Carolina eliminated the jet fuel tax in 2015, flights in and out of the state grew four percent and 31 new routes were added from a wide range of carriers. The tax breaks indicate Georgia values air transportation, promotes travel and is looking to attract new carriers to the state.

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