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AJC.com > Legislature > Georgia Beat > Archives > 2005 > March > 10 > Entry
House votes to give Delta tax break on fuel
The Atlanta Journal-Constitution
The Georgia House overwhelmingly approved legislation Thursday that could help financially strapped and homegrown Delta Air Lines by setting a cap on the sales tax for jet fuel.
The bill, sponsored by House Speaker Pro Tem Mark Burkhalter (R-Alpharetta), would put a $15 million annual limit on the sales tax on jet fuel, regardless of how high fuel prices go.
Delta, the state’s largest private employer, paid $17 million in fuel taxes last year.
Burkhalter said Georgia’s airlines currently are at “an unfair disadvantage” because Texas and other states typically exempt airline fuel from state sales tax.
“This is a small way we can help our airlines in uncertain times,” he said.
Burkhalter said Air Tran officials also have told him they may consider moving their headquarters to Atlanta if the sales tax cap becomes law.
Some Clayton County lawmakers said they have concerns about the financial impact on their local governments.
“Do you fully understand the financial burden you are putting on the backs of Clayton County?” state Rep. Darryl Jordan (D-Riverdale) asked Burkhalter.
Burkhalter said Clayton could lose out if Delta decided to buy its fuel in neighboring Fulton County.
He also said that, considering the airline’s current plight, the greater harm would be if Delta went out of business.
State Rep. Gail Buckner (D-Jonesboro) said the bill needed more study and sought to have it tabled. Her motion failed 28 to 127, and the bill passed 138 to 121.
The measure now goes to the state Senate.
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