H.R. 695 — State and Local General Sales Tax Protection Act

State and Local General Sales Tax Protection Act

This bill specifies that certain requirements for aviation fuel tax revenue are limited to excise taxes on aviation fuel.

Current law requires that an Airport Improvement Program (AIP) grant recipient provide assurances that the proceeds from state and local taxes on aviation fuel will be used for the capital or operating costs of the airport or local airport system. Under current Federal Aviation Administration policy, this requirement applies to any tax on aviation fuel, regardless of whether the tax is imposed only on aviation fuel or is imposed on other products as well as aviation fuel.

This bill specifies that the AIP grant requirements apply only to state and local excise taxes on aviation fuel. The requirements do not apply to (1) state or local general sales taxes, or (2) state or local generally applicable sales taxes.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 695 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 695

 To amend title 49, United States Code, to clarify the use of certain 
                          taxes and revenues.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2023

Mrs. Napolitano (for herself, Ms. Williams of Georgia, Mr. Huffman, Mr. 
  Garamendi, and Mr. David Scott of Georgia) introduced the following 
    bill; which was referred to the Committee on Transportation and 
                             Infrastructure

_______________________________________________________________________

                                 A BILL


 
 To amend title 49, United States Code, to clarify the use of certain 
                          taxes and revenues.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State and Local General Sales Tax 
Protection Act''.

SEC. 2. USE OF REVENUES.

    (a) Written Assurances on Use of Revenue.--Section 47107(b) of 
title 49, United States Code, is amended--
            (1) in each of paragraphs (1) and (2) by striking ``local 
        taxes'' and inserting ``local excise taxes'';
            (2) in paragraph (3) by striking ``State tax'' and 
        inserting ``State excise tax''; and
            (3) by adding at the end the following:
    ``(4) This subsection does not apply to State or local general 
sales taxes nor to State or local generally applicable sales taxes.''.
    (b) Restriction on Use of Revenues.--Section 47133 of title 49, 
United States Code, is amended--
            (1) in subsection (a) in the matter preceding paragraph (1) 
        by striking ``Local taxes'' and inserting ``Local excise 
        taxes'';
            (2) in subsection (b)(1) by striking ``local taxes'' and 
        inserting ``local excise taxes'';
            (3) in subsection (c) by striking ``State tax'' and 
        inserting ``State excise tax''; and
            (4) by adding at the end the following:
    ``(d) Limitation on Applicability.--This subsection does not apply 
to--
            ``(1) State or local general sales taxes; or
            ``(2) State or local generally applicable sales taxes.''.
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State and Local General Sales Tax Protection Act

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