Reduction in Sales Tax on Natural Gas and Liquid Propane Filed in House of Representatives

Reduction in Sales Tax on Natural Gas and Liquid Propane Filed in House of Representatives

Legislation to be Sponsored by Representative Jay Roberts (District 154)

ATLANTA –Governor Sonny Perdue announced today that legislation (HB970) cutting in half the state sales tax on natural gas and liquid propane for residential heating during the winter months of 2006 has been filed in the State House of Representatives.  The tax reduction is expected to save Georgia taxpayers between $16 and $20 million this winter. 

The legislation stipulates that the Georgia sales tax on natural gas will be cut in half during the peak home heating months of January through April 2006.  Liquid propane will be cut in half during the months of January through March 2006. 

The primary sponsor of the HB970 is the Governor's Floor Leader, Representative Jay Roberts (District 154), and the bill has been co-sponsored by Speaker Pro Tempore Mark Burkhalter (District 50), Governor's Floor Leader Rich Golick (District 34), chairman of the House Ways and Means Committee, Larry O'Neal (District 146) and Governor's Floor Leader Vance Smith (District 129).

            “Forecasters expect the price of home heating to double this winter,” said Governor Sonny Perdue.  “The state shouldn't receive a revenue windfall because of an increase in home heating bills, so we're asking the legislature to cut the sales tax in half.” 

            In Georgia , natural gas and liquid propane are subject to a four percent state tax of the total cost of the commodity.  Governor Perdue's Executive Order cuts the state sales tax in half to two percent during the peak home heating months. 

In December Governor Perdue also announced more than $10 million in state funds will go to Georgia 's low income energy assistance program.  Governor Perdue's amended FY06 budget recommendation, which will be released Wednesday, January 11 at the State of the State address, will include $4.15 million in the Department of Human Resources budget, which will be added to the $6 million already committed by the Public Service Commission.  This is the first time that the low income energy assistance program has been funded with state general funds.  Typically the program is a federally funded program.  The state of Georgia has received $17.9 million from the federal Low Income Home Energy Assistance Program (LIHEAP).  

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