Governor Lowers Natural Gas Tax

In a move expected to save Georgia taxpayers between $16 million and $20 million this winter, Gov. Sonny Perdue Tuesday cut in half the state sales tax on natural gas and liquid propane for residential heating.

The executive order stipulates that Georgia’s sales tax on natural gas will be reduced during the peak home heating months of January through April 2006. Liquid propane will be reduced during the months of January through March 2006.
“State government should not reap a financial windfall because of unfortunate market conditions causing the cost of natural gas and liquid propane to rise,” said Perdue. “This executive order will allow Georgia homeowners to keep more money in their pockets this winter.”

In Georgia, natural gas and liquid propane are subject to a 4 percent state tax of the total cost of the commodity. The governor’s action cuts the state sales tax in half to 2 percent during the peak home heating months. The tax reduction only applies to residential heating bills.

Atlanta Business Journal