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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.
Legislation Highlights:
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. REFERENCES 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.
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