Jet Fuel Tax Reversal Effort Blocked
February 19, 2016
Initial attempts to reverse the Federal Aviation Administration’s (FAA) decision on jet fuel sales tax revenue were unsuccessful last week in the House but additional efforts will likely continue this Congressional session.
As reported last week in the CSAC Bulletin, Representative Grace Napolitano (Los Angeles County) introduced an amendment to the FAA reauthorization bill to limit the scope of a recent ruling that requires state and local agencies to dedicate all sales tax revenue generated from jet fuel sales to aviation related purposes. Otherwise, agencies could face penalties that include fines and jeopardized eligibility for federal aviation grants to regional airports. Unfortunately, Rep. Napolitano’s amendments were rejected with a voice vote of the House Transportation and Infrastructure Committee and withdrawn before a formal recorded vote was taken.
The amendment would have re-established Congressional intent and
29 years of federal interpretation that state and local sales tax
measures of general application are not the same as aviation fuel
excise taxes. Furthermore, states and localities should be able
to use those revenues as they so desire and follow voter-