When Nathan Deal — who is the current governor of the state of Georgia — signed a $5 billion tax relief bill on Friday, March 2, 2018, it included the removal of the portion of the bill which would have eliminated the four percent sales and use taxes levied on jet fuel for all airlines which purchase fuel in the state of Georgia…
Collection of Jet Fuel Sales Tax Suspended After All by Governor of Georgia
…but Deal announced that he signed an executive order citing that effective as of Wednesday, August 1, 2018, the sales and use taxes levied on jet fuel for all airlines which purchase fuel in the state of Georgia will be suspended indefinitely anyway — or at least until when the Georgia General Assembly reconvenes in 2019 to decide whether or not to continue the suspension of the tax or reimpose it; but by that time, Nathan Deal will no longer be governor.
Because many other states either levy a lower tax on jet fuel or do not charge it at all, the sales tax places the state of Georgia at a disadvantage; and the jet fuel taxes were the highest in the country — after Illinois, California and Michigan — amongst states which have major airport hubs, according to Deal.
Back in February of 2018, Casey Cagle — who is currently the Republican lieutenant governor of the state of Georgia — had threatened to kill any tax legislation which benefits Delta Air Lines unless the company changes its position and fully reinstates its relationship with the National Rifle Association…
I will kill any tax legislation that benefits @Delta unless the company changes its position and fully reinstates its relationship with @NRA. Corporations cannot attack conservatives and expect us not to fight back.
— Casey Cagle (@CaseyCagle) February 26, 2018
…which caused a significant amount of backlash from voters; and proved to be one of the missteps which ultimately derailed his campaign.
The Senate Rules Committee of the state of Georgia voted to remove the jet fuel tax break slated for Delta Air Lines out of a comprehensive tax overhaul on Wednesday, February 28, 2018. As a result, lawmakers from other parts of the United States actively courted Delta Air Lines to move its headquarters to their cities or states.
Delta Air Lines became one of the many travel companies which had taken the stance of denouncing the National Rifle Association on its official position and subsequently cut the discounts and benefits of their products and services for members of that organization. This controversial action was in response to the wake of the mass murders of 17 innocent people which resulted from the shootings at Marjory Stoneman Douglas High School in Parkland on Wednesday, February 14, 2018 — which caused a major rift of factions who were sharply divided on the issue of gun control, which had widened significantly.
The term of Cagle as lieutenant governor of the state of Georgia will end when the new lieutenant governor is sworn into office. Cagle was a candidate for governor of the state of Georgia; but he officially conceded to contender Brian Kemp after he trailed in the runoff election on Tuesday, July 24, 2018.
Edward Bastian — who is currently the chief executive officer of Delta Air Lines — publicly thanked Deal and said that “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.”
Delta Air Lines alone stands to save as much as $40 million from the suspension of the four percent sales and use taxes levied on jet fuel for all airlines which purchase fuel in the state of Georgia.
Summary
The tens of millions of dollars which airlines will save means that residents of the state of Georgia have that much less money with which to work — but if the savings for the airlines translates into more opportunities and business from other areas as a result, then it is effectively a win-win situation for all…
…although I admit that I have not completely bought into that — despite not having proof as to the reasons why…
Nathan Deal is the current governor of the state of Georgia. Photograph ©2014 by Brian Cohen.
