Georgia’s governor has suspended collection of sales taxes on jet fuel, countering the state legislature’s rejection of a proposal to scrap the levy earlier this year in retaliation for Atlanta-based Delta Air Lines’ cancellation of a discount program for National Rifle Association members.
Republican Gov. Nathan Deal’s executive order to end the 4 percent tax — which brought in $39 million in fiscal year 2018 — will take effect on Wednesday. The move could save Delta as much as $44 million a year.
“The annual economic impact of Georgia airports amounts to over $62 billion per year, and direct flights out of Hartsfield-Jackson Atlanta International Airport support nearly $11 billion in foreign investment and 42,000 jobs across the state,” Deal said in a statement on Monday. “Providing tax relief to job creators will help us maintain our competitive advantage as a global hub for commerce now and in the future.”
The state legislature will need to determine whether to uphold that decision during its upcoming session, according to the Atlanta-Journal Constitution.
Delta irked the state’s Republican lawmakers earlier this year when it ended a program that offered reduced fares for NRA members. Delta’s chief executive officer said the decision, made after a Florida high school shooting in February that resulted in the death of 17 students and faculty members, was driven by the gun lobby’s “divisive commentary and rhetoric.”
“We’re not going to change our values based on having money held over our head,” Ed Bastian said earlier this year at a National Press Club event.
Rising jet fuel costs are curbing profits at U.S. airlines, and Delta previously said it would trim flights to ease the effects of the nearly 40 percent increase.
