Gov. Sonny Perdue signed an executive order cutting 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 four percent state tax of the total cost of the commodity. Perdue’s executive order cuts the state sales tax in half to two percent during the peak home heating months. The tax reduction only applies to residential heating bills, and is expected to save Georgia taxpayers between $16 to 20 million dollars this winter.

Perdue’s executive order requires legislative approval. Members of the state House of Representatives and state Senate were present at Perdue’s announcement and committed to swift approval of the measure through the 2006 Georgia General Assembly. Present at the announcement were Senators Don Balfour, Casey Cagle, Jack Hill, Mitch Seabaugh and Majority Leader Tommy Williams, Representative Mark Burkhalter, Floor Leader Rich Golick, Speaker Glen Richardson and Floor Leader Vance Smith.

In September, Perdue called for a one-month moratorium of the state tax on gasoline fuel. In a special session, the Georgia General Assembly ratified Perdue’s actions, and taxpayers saved more than $77 million during a time of great volatility in the gasoline market, due to Hurricanes Katrina and Rita.

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