In an executive order this week, Georgia Gov. Nathan Deal suspended his state’s sales tax on jet fuel, a move immediately cheered by Airlines for America (A4A).
A4A, the industry organization representing leading airlines in the United States, said it is a move that will strengthen Georgia in the competitive marketplace and incentivize new airlines their way. Before Deal’s executive order, the organization ranked Georgia as eighth on their list of states with the most burdensome taxes on jet fuel, which they note is already one of the most expensive pieces of the aviation industry.
“We applaud Governor Deal’s decision to issue an executive order that encourages the airline industry to continue to invest in the state’s future, leading to new and diverse flight options, lower fares, and greater opportunities for job growth at the world’s busiest airport,” A4A President and CEO Nicholas Calio said. “These improvements will benefit everyone who flies.”
Georgia now joins an increasing number of states that are eliminating jet fuel taxes in favor of growth, including Texas, Ohio, and Delaware. Other states, such as Florida, Arizona, and North Carolina, have also lowered jet fuel taxes in recent years. North Carolina eliminated the jet fuel tax in 2015, and since then, flights in and out of the state have grown by four percent and 31 new routes.