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State offsets some local funds lost to aviation fuel tax
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Following guidance from the Department of Revenue, which Friday, June 1, announced it will suspend collection of local jet fuel sales tax in order to comply with Federal Aviation Administration (FAA) regulations, Gov. Nathan Deal today announced $28 million will be made available to 48 communities with airports. The funding, included in the amended FY2018 budget, will be provided to local government airport sponsors through a Department of Community Affairs grant.
“Today, Georgia has taken critical action to ensure our federal funding is not jeopardized and local governments that rely upon local jet fuel sales tax are made whole,” said Deal. “In light of DOR’s announcement, which brings Georgia into compliance with the federal government, I’ve allocated $28 million to assist the 48 local governments affected by suspension of the local sales tax. The grants, based on the remaining time and monthly average of each community’s Special Local Option Sales Tax, will be disbursed by DCA by the end of this fiscal year.”
The lion’s share of the money, $26.9 million is going to Clayton County, which houses Atlanta’s Hartfield-Jackson International Airport. Liberty County will receive $5,185 to make up for sales expected at MidCoast Regional Airport, a joint military/civilian venture on Fort Stewart.

The announcement by DOR brings Georgia into compliance with the 2014 FAA rule on taxation of aviation fuel. This FAA rule affects local sales taxes authorized and collected after 1987 on the purchase of jet fuel.

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