Georgia passes tax bill punishing Delta for NRA split

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54. Some history on the jet fuel tax break:

From https://www.taxrates.com/blog/2018/02/14/georgia-governor-champions-sales-tax-exemption-jet-fuel/:

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Other airlines would also benefit from the proposed exemption, since fuel is the second highest input for airlines. Sean Williams, vice president for state and local government affairs at Airlines for America, says the exemption could draw more flights to Atlanta. He notes that North Carolina “saw a 4 percent increase in flights in the first year after removing its sales tax.”

Georgia should be familiar with the effects of a sales tax exemption for jet fuel. After Delta filed for Chapter 11 bankruptcy in 2005, the state exempted a qualifying airline (Delta) at a qualifying airport (Hartsfield-Jackson) from 1 percent of the state sales tax on jet fuel. It extended the temporary exemption three times until 2012, when it made it permanent. However, the exemption was then repealed effective July 1, 2015.

There have been at least two attempts to partially restore the sales tax exemption for fuel since then, though both failed to gain traction. In 2016, HB 898 sought to exempt from any state or local sales and use tax aviation fuel purchased by a qualifying airline at a qualifying airport. Tax would be collected on 20 percent of the fuel purchased, as that was deemed to be consumed in the state. Fuel consumed outside of the state would be exempt.

A less generous measure was proposed in 2017. HB 145 sought to partially exempt jet fuel from state sales and use tax (local sales and use tax would still apply). Qualifying airlines at qualifying airports would not have to pay state sales tax on 55 percent of the jet fuel purchased to travel out of state. State tax would be collected on the remaining 45 percent.

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More at link.