Statement of Governor Sonny Perdue Regarding Final Passage of the Natural Gas Tax Cut

Statement of Governor Sonny Perdue Regarding Final Passage of the Natural Gas Tax Cut

ATLANTA – Governor Sonny Perdue issued the following statement today regarding the final passage of the natural gas tax cut to relieve home heating costs (HB970).

“This year, the average home heating bill is at least twice what it was last year, placing a true hardship on many low income seniors and Georgia families,” said Governor Sonny Perdue. “State government should not reap a financial windfall because of these unfortunate market conditions. This legislation will cut the state’s sales tax revenue from home heating bills in half during the peak home heating months.”

Governor Perdue thanked the General Assembly for the passage of the bill. “On behalf of the people of Georgia, I appreciate the speedy action taken by the state Senate and House of Representatives on this important item. I want to thank co-authors Representative Mark Burkhalter and Representative Jay Roberts for introducing the legislation in the House and Senator Mitch Seabaugh for carrying the bill in the Senate.”

The natural gas tax cut will suspend half of the tax collected on consumer purchases of natural gas from January 1 to April 30, 2006 and liquid propane until March 31, 2006, returning approximately $16 to $20 million to Georgia home owners.

The bill passed the House of Representatives 169-2 and the Senate 51-3 and now awaits the Governor’s signature to become law.

In December 2005 Governor Perdue 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 includes $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).

The natural gas tax cut is the second time Governor Perdue has proposed tax cuts for Georgia citizens by issuing an Executive Order, later followed by the introduction and passage of legislation to the General Assembly. In September 2005 Governor Perdue signed an Executive Order suspending the state sales tax on gasoline and diesel fuel for one month. After a special session of the Georgia General Assembly ratifying the Governor’s actions, taxpayers saved approximately $77 million on the purchases of gasoline and diesel fuel during a period of great volatility in the global market for the commodity.

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