Customers welcome natural gas tax break - WALB.com, South Georgia News, Weather, Sports

Customers welcome natural gas tax break

January 24, 2006

Valdosta - Next time you fill up your propane tank, it shouldn't cost you quite as much. "I think that's great, its a great idea," said Rudolph Robinson.

With the price of natural gas and propane soaring, it's costing many South Georgians twice as much to heat their home this winter. "It went up probably $75.00 from last month," said Robinson.

But finally, we're getting a break. Georgia legislators have approved a bill cutting the state's sales tax rate on natural gas and propane from four percent to two. The break applies to all natural gas purchased between January 1 and April 30, and propane bought through March 31. "Anything that will get the price cheaper is a good idea," said Chris Carter, Manager at Akins Petroleum.

Only residential customers will get the tax break, but local suppliers are also glad to hear the news. Workers at Akins Petroleum say steep gas prices have caused many customers to change their buying habits. "People are naturally going to be more conservative," said Carter.

The business has been forced to cut their profit margins to help accommodate those customers. "We're probably making a good dime a gallon less than we did at this time last year just because of the price," said Carter.

The tax break may not make a huge dent on your next bill.  "They'll save about $2.00 on a hundred gallon purchase," said Carter.

But both customers and suppliers say even the smallest break is better than no break at all.  

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