Delta jet fuel tax break gets committee approval

A bill that would restore Delta Air Lines’ lucrative tax break on jet fuel purchases (HB 145) received a “do pass” recommendation Thursday from the House Ways & Means Committee.

Delta enjoyed a sales tax exemption for 10 years before it was repealed in 2015 as part of a rewrite of the state’s motor fuel excise tax.

At that time, several legislators questioned why such a profitable business as Delta, which reports billions in profits each year, should continue to receive a $25 million a year tax break from the state.

Rep. John Carson (R-Marietta) is sponsoring the bill that would restore at least part of that tax break for Delta – the fiscal impact is estimated at $15 million yearly.

“This is about tax equity,” Carson told the Ways & Means Committee, claiming that Georgia imposes the fourth highest tax on jet fuel in the nation.

Carson said the bill has been amended so that it only applies to large commercial airliners and not to corporate jets.

© 2017 by The Georgia Report

Tags: Delta Air Lines , tax break