DARRELL EALUM: Special session historic response to disaster

Historic in nature, Governor Deal called our General Assembly into a special legislative session to diminish the economic impact caused by Hurricane Michael that entered southwest Georgia as a Category 3 hurricane and passed over Albany as a Category 2. Unparalleled in our state’s response to a natural disaster, the legislature passed three bills to send millions in assistance to southwest Georgia: House Bills 1EX, 4EX and 5EX.

Sine die to end our historical five-day session was as uncommon as our session was unique. With our legislative scope limited by Gov. Deal’s directive, we originated the three fiscal bills in the House and sent them to the Senate on Day 3. Then, with no additional legislation to consider, we patiently waited for the Senate to act. Thankfully and unusually, the Senate passed our bills unchanged on Day 5, and we quietly adjourned without the fanfare and excitement of a regular session.

During this special session, we focused on southwest Georgia and the $2.5 billion in catastrophic damages and losses to state and private property. Every House member was acutely aware of the devastation and horrific destruction to our agriculture, timber and pecan industries.

HB 4EX provides for a $200 million tax credit for casualty losses by our southwest Georgia timber and pecan tree growers. This credit may equal 100 percent of casualty loss and will directly infuse funds into 28 of our counties to assist with the financial burden to replant damaged timber groves and pecan orchards. This credit will surely not cover all losses; however, this act sends a message to southwest Georgia and to our federal agencies that Gov. Deal and our General Assembly have acted decisively to address our losses.

This tax credit is subject to replanting requirements and is equal to 100 percent of the casualty loss deduction reported on the taxpayer’s federal tax return. Although tax credits in excess of the taxpayer’s tax liability will be refunded to the taxpayer, the credit cannot exceed $400 per acre, and the total credits preapproved for all growers may not exceed $200 million. Taxpayers are eligible to claim the credit in the taxable year in which they replant 90 percent of the timber lost from Hurricane Michael.

HB 1EX is a $270 million supplement to our FY 2019 Budget with a large portion of the funds to be allocated to directly assist southwest Georgia. A few key appropriated measures include:

1. $69 million for the Governor’s Emergency Fund to pay the state match for federal disaster assistance funding for expenses related to damages and operating costs associated with Hurricane Michael.

2. $55 million for emergency disaster relief assistance to our impacted farmers.

3. $20 million for emergency disaster relief assistance for cleanup efforts for timberland and pecan growers.

4. $25 million for the OneGeorgia Authority.

5. $15 million for Regional Economic Business Assistance grants.

6. $69 million from motor fuel funds for transportation funding to offset expenses for cleanup and recovery to match reimbursement funding from the federal government (75 percent).

HB 5EX will not have the powerful economic impact for southwest Georgia of HB 1EX and 4EX; however, the bill will positively impact revenue for our airport. Due to disgruntlement with Delta Airlines by General Assembly members during our 2018 legislative session, the jet fuel tax was extended on all airlines in Georgia. This legislative action negatively impacted all commercial airlines and airports, to include our airport in Albany.

After our regular 2018 session ended, Gov. Deal issued an executive order suspending the collection of sales and use tax on jet fuel. HB 5EX ratified the governor’s executive order and continues the sale and use tax exemption through June 30. During the 2019 legislative session, the General Assembly will weigh the economic impact and decide whether to continue the exemption.

Delta Airlines’ main hub and headquarters is in Atlanta, and before this bill Georgia had the fourth-highest fuel tax burden among the 21 states with large airports. Atlanta is truly an international city, and continuing the exemption will reinforce Atlanta’s strong position in global travel.

In my final remarks before the House, I fondly spoke of Albany as the pecan capitol of the world and thanked Gov. Deal and the House for this historical act of kindness. This is my final newsletter, and I trust my letters have been informative over the years. Serving Albany in the General Assembly has been a joy, and I will forever be appreciative to our citizens for their vote of confidence.

Representative Darrel Ealum represents the citizens of District 153, which includes portions of Dougherty County. He was elected into the House of Representatives in 2014 and currently serves on the Banks & Banking, Defense & Veterans Affairs, Human Relations & Aging, and State Properties committees.