Policy and Procedures Concerning the Use of Airport Revenue; Proceeds From Taxes on Aviation Fuel

Résumé

This action proposes to amend the Federal Aviation Administration ("FAA") Policy and Procedures Concerning the Use of Airport Revenue published in the Federal Register on February 16, 1999 ("Revenue Use Policy") to clarify FAA's policy on Federal requirements for the use of proceeds from taxes on aviation fuel. Under Federal law, airport operators that have accepted Federal assistance generally may use airport revenues only for airport-related purposes. The revenue use requirements apply to certain state and local government taxes on aviation fuel as well as to revenues received directly by an airport operator. This notice publishes a proposed clarification of FAA's understanding of the Federal requirements for use of revenues derived from taxes on aviation fuel. Briefly, an airport operator or state government submitting an application under the Airport Improvement Program must provide assurance that revenues from state and local government taxes on aviation fuel are used for certain aviation-related purposes. These purposes include airport capital and operating costs, and state aviation programs. In view of the interests of sellers and consumers of aviation fuel, and of state and