Governor Perdue Signs Natural Gas Tax Cut

Governor Perdue Signs Natural Gas Tax Cut

ATLANTA – Governor Sonny Perdue signed today the natural gas tax cut (HB970) into law.  The Governor was joined for the signing ceremony by members of the General Assembly, including the bill's co-authors, Speaker Pro Tem Mark Burkhalter and House Floor Leader Jay Roberts, and Senator Mitch Seabaugh who carried the bill in the Senate.

“Higher home heating costs are placing a burden on many Georgia families,” said Governor Sonny Perdue.  “I do not believe the state should benefit financially because of these unfortunate market conditions.  This tax cut will reduce the state's sales tax revenue from home heating bills in half during the peak home heating months this winter.”

The natural gas tax cut suspends 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.

In a separate effort to help Georgians with high heating bills, Governor Perdue announced in December more than $10 million in state funds for 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 (LIHE AP ). 

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.

# # #