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To help airlines, Georgia House OKs bill to cap jet-fuel taxes
The Atlanta Journal-Constitution
3-11-05
The Georgia House overwhelmingly approved legislation Thursday that could help financially strapped Delta Air Lines by capping sales tax for jet fuel.
House Bill 341 would put annual limits on sales tax that the state and Clayton County collect for jet fuel, regardless of how high fuel prices go.
The state would cap its tax at $15 million - $2 million less than what Atlanta-based Delta paid last year.
Clayton County,home of Hartsfield-Jackson International Airport, could collect no more than $7.5 million, about what it was collecting from Delta before fuel prices spiked last year, said the bill's sponsor, House Speaker Pro Tem Mark Burkhalter (R-Alpharetta).
Last year, the county collected about $9 million from Delta, or about $4.5 million for each cent of local tax, he said.
"This is a small way we can help our airlines in uncertain times," Burkhalter told House members.
Georgia's airlines currently are at "an unfair disadvantage" because Texas and other states typically exempt airline fuel from state sales tax, he said.
Burkhalter said AirTran officials have told him that a cap on the sales tax on fuel might persuade them to move their headquarters from Florida to Atlanta.
Tad Hutcheson, a spokesman for AirTran, said the company's chief executive, Joe Leonard, spoke with Burkhalter about the fuel tax relief bill but made no mention of moving AirTran's headquarters.
Asked about Hutcheson's statement, Burkhalter said, "I have talked to them, and they are interested."
During a floor debate on Burkhalter's bill, some Clayton County lawmakers voiced concerns about the impact on their local government.
"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 responded that, considering the jobs and revenue the airline provides, "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, 127 to 28, and the bill passed, 138 to 21.
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The Atlanta Journal-Constitution
3-11-05
The Georgia House overwhelmingly approved legislation Thursday that could help financially strapped Delta Air Lines by capping sales tax for jet fuel.
House Bill 341 would put annual limits on sales tax that the state and Clayton County collect for jet fuel, regardless of how high fuel prices go.
The state would cap its tax at $15 million - $2 million less than what Atlanta-based Delta paid last year.
Clayton County,home of Hartsfield-Jackson International Airport, could collect no more than $7.5 million, about what it was collecting from Delta before fuel prices spiked last year, said the bill's sponsor, House Speaker Pro Tem Mark Burkhalter (R-Alpharetta).
Last year, the county collected about $9 million from Delta, or about $4.5 million for each cent of local tax, he said.
"This is a small way we can help our airlines in uncertain times," Burkhalter told House members.
Georgia's airlines currently are at "an unfair disadvantage" because Texas and other states typically exempt airline fuel from state sales tax, he said.
Burkhalter said AirTran officials have told him that a cap on the sales tax on fuel might persuade them to move their headquarters from Florida to Atlanta.
Tad Hutcheson, a spokesman for AirTran, said the company's chief executive, Joe Leonard, spoke with Burkhalter about the fuel tax relief bill but made no mention of moving AirTran's headquarters.
Asked about Hutcheson's statement, Burkhalter said, "I have talked to them, and they are interested."
During a floor debate on Burkhalter's bill, some Clayton County lawmakers voiced concerns about the impact on their local government.
"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 responded that, considering the jobs and revenue the airline provides, "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, 127 to 28, and the bill passed, 138 to 21.
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