Federal law (49 USC § 47133) requires that "state and local taxes" on aviation fuel be used for airport purposes. While 5% of our 6.25% State tax is grandfathered, the IATA and IPAA along with the Illinois Department of Transportation and Department of Revenue have been in discussions throughout the year regarding the remaining 1.25% State Tax. Although Illinois failed to meet its deadline, the expectation is that we have a bill passed at the beginning of the 2018 Legislative Session.
The current point of contention is a proposal to distribute funds based on "enplanements." The IATA opposes this and has proposed instead to allow a priority rating system determined by IDOT. We are continuing to work with the State on this issue and hope for swift resolution in the upcoming months.
Federal Law 49 USC § 47133
FAA's Policy Amendment on aviation fuel tax revenue usage.
Illinois' Senate Bill 482, Amendment 2 from November 2017, containing the "enplanement" language.