Federal AviationAdministration

Clarification to Policy and Procedures Concerning Use

of Airport Revenues; Proceeds from Taxes on

Aviation Fuel

Presented By: Mark McClardy

Manager, Airports Division

Western Pacific Region

September, 2015

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What is the Issue?Taxes on aviation fuel (except taxes in effect on December 30, 1987) are considered airport revenue and must meet the requirements set in the Policies and Procedures Concerning the Use of Airport Revenues (Revenue Use Policy).

• Taxes in effect on December 30, 1987 could be considered “grandfathered”

• Grandfather status would require: – Sponsor will need to submit documentation filed with the action

plans to determine the grandfather status of aviation fuel taxes. – FAA will need to review the documentation, legislation, or

amendments to aviation fuel taxes in order to confirm compliance with the Federal requirements.

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Who Does the Amendment Apply to?

• Any State or local government (whether an airport sponsor or non-sponsor) that levies a tax on aviation fuel.

– States, Counties, and Municipalities

• Owners and operators of airports who have accepted Federal assistance from the FAA.

3Proceeds from Taxes on Aviation FuelJuly 2015

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Next Steps• The final policy was published on November 7, 2014.

• Action Plans should be submitted by December 8, 2015.

• Implementation of Action Plans to be completed by December 8,

2017.

• State and local officials should prepare an action plan to initiate the process to amend any non-compliant State laws and local ordinances to conform to Federal law.

• Within a reasonable transition period not to exceed three years of the effective date.

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More on the Action Plan• The Action Plan should detail the process necessary to

develop reporting requirements and tracking systems for discrete information on aviation fuel tax revenues.

1) A commitment to undertake the legislative process.

2) The timeframe for implementation should not to exceed 3 years.

• The action plan should be submitted to the FAA within a year of the effective date.

5Proceeds from Taxes on Aviation FuelJuly 2015