With an executive order Monday afternoon, Gov. Nathan Deal has suspended the collection of the state's four-percent sales and use tax on jet fuel
The order, which is effective August 1, 2018, is a big economic boost for Atlanta-based Delta and other airlines that use Hartsfield Jackson International Airport in Atlanta.
“Georgia imposes the fourth-highest fuel tax burden among states with major airport hubs, putting us at a daily disadvantage behind North Carolina, Texas, Florida and New York, among others. In fact, Georgia’s tax burden ranks only behind high-tax states California, Illinois and Michigan,” said Deal in a press statement. “The annual economic impact of Georgia airports amounts to over $62 billion per year, and direct flights out of Hartsfield-Jackson Atlanta International Airport support nearly $11 billion in foreign investment and 42,000 jobs across the state.
The state sales tax on jet fuel amounted to more than $39 million in revenue, but in his statement, the governor said the suspension of the tax collection will pay off in other ways.
“During the past eight years, we’ve taken similar steps to boost industries and economic growth around the state. In 2012, for example, we eliminated the energy sales tax on manufacturers. As a result, in the past five years, we’ve seen manufacturing jobs grow by 12.5 percent to a total of 395,807 in 2017," Deal said. "Just as removal of this tax burden spurred growth in the manufacturing arena, so will removal of the jet fuel tax burden in the airline industry."
Deal said removing the tax from the airline industry will help Georgia retain its reputation as a business-friendly state.
“In order to remain the No. 1 state in which to do business, attract more companies to our communities and provide more jobs for our growing population, it is crucial to maintain and preserve a pro-business climate. Providing tax relief to job creators will help us maintain our competitive advantage as a global hub for commerce now and in the future," Deal said.
Click here to see the full content of the executive order.
