Airport(s):
Central Nebraska Regional Airport (GRI)
Abstract:
The Office of the Chief Counsel responded to a letter from the Hall County Airport Authority, operator of the Central Nebraska Regional Airport (Nebraska), requesting an advisory opinion on whether a proposed states sales tax upon aircraft fuel, the proceeds of which would be paid to the state general fund, would violate 49 U.S.C. § 40116 (the Anti-Head Tax), 49 U.S.C. § 47107, or other federal statutes, rules or regulations. (p. 1).|A sales tax on aviation fuel is permitted in accordance with the Anti-Head Tax, but the proceeds derived from such a tax are subject to the revenue use requirements of 49 U.S.C. §§ 47107(b)(1) and 47133(a). (p. 2).|Monies from a state tax on aviation fuel must be spent to support either: (1) the capital or operating costs of the airport, the local airport system, or other local facilities owned or operated by the airport owner or operator and directly and substantially related to the air transportation of passengers or property, or (2) a state aviation program or for a noise mitigation purpose. (p. 2).|If the State were to enact legislation permitting general use of proceeds from the aviation fuel tax, continued federal funding of airport and noise abatement projects at federally-assisted airports in the State of Nebraska could be jeopardized. (p. 2).
Index Terms:
Airport purposes|Anti-Head Tax Act|Fuel tax|Revenue diversion|Taxation