The Atlanta Journal-Constitution

» Georgia House backs jet fuel tax break,

- By James Salzer jsalzer@ajc.com

The Georgia House overwhelmi­ngly backed legislatio­n Tuesday to exempt air carriers such as Delta Air Lines from paying state taxes on jet fuel, saving them tens of millions of dollars each year.

The 140-25 vote for House Bill 447 was not a surprise, since it was backed by Gov. Brian Kemp and a similar tax break measure won the chamber’s approval last year.

Last year’s legislatio­n died after Delta ran afoul of the National Rifle Associatio­n, and the tax break got mixed up in election-year politics. This year there has been, so far, no such issue.

Under the measure sponsored by state Rep. Dominic LaRiccia, R-Douglas, floor leader for Kemp, the sales-tax exemption on jet fuel would be extended for 20 years. The assembly voted during a special session in November to extend it to June 30, so lawmakers would have to take action during the 2019 session to keep it on the books.

Most of the $35 million to $40 million in savings would go to airlines and freight companies, and a huge chunk of that would be saved by Delta. It now goes to the Senate. As an incentive to rural lawmakers, the bill also contains a small excise tax on fuel that would raise $3.5 million to $4 million a year. The money would be used as a local match to get federal funding, which would be spent on small-town airports.

LaRiccia said airlines would essentiall­y be paying excise taxes to help small airports their planes are too big to use.

State Rep. David Knight, R-Griffin, urged lawmakers to consider raising the excise tax in the bill.

Last session it looked like airlines would receive a permanent tax break. But then Delta broke marketing ties with the NRA, and lawmakers stopped its progress.

Then-Gov. Nathan Deal responded after the 2018 session: The state stopped collecting the local portion of the tax on July 1, and then the governor signed an executive order suspending collection­s of the state portion of the tax.

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