ATR Urges Support for Davis-Cohen Airport Tax Amendment to House FAA Bill

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Posted by Justin Sykes on Monday, June 26th, 2017, 10:08 AM PERMALINK

Americans for Tax Reform this week released a letter to House Transportation and Infastructure Committee members urging support for the bipartisan amendment being offered by Representative Rodney Davis (R-IL) and Representative Steve Cohen (D-TN) to the House FAA reauthorization bill (H.R. 2997).

The Davis-Cohen amendment would correct a long-standing issue with how revenue from the assessmenet of taxes, fees, and charges upon businesses located at commercial service airports is used. The problem the Davis-Cohen amendment would address is that often revenue generated from taxes and fees levied at commercial service airports is diverted and used for non-aviation purposes outside of the airport. 

The amendment being offered as part of the House's FAA reauthorization bill would resolve this issue by ensuring revenue from any tax, fee, or charge levied upon any business located at a commercial service airport remains at the airport and is used solely for aviation purposes. 

The full text of the letter is below and can also be found here

June 26, 2017

Dear Chairman Shuster, Ranking Member DeFazio, Chairman LoBiondo and Ranking Member Larsen:

Americans for Tax Reform (ATR) urges your support for the bipartisan amendment being offered by Representative Rodney Davis (R-IL) and Representative Steve Cohen (D-TN) to the House FAA reauthorization bill, H.R. 2997. 

The Davis-Cohen amendment offers a common sense solution to issues surrounding the manner in which revenue from the assessment of taxes, fees, and charges upon businesses located at commercial service airports is used.

It is often the case that revenue generated from taxes and fees levied at commercial service airports is diverted and used for non-aviation related purposes outside of the airport. This diversion of revenue generated at airports is wholly inequitable and deprives America’s airports of revenue that should be used solely for aviation related projects and infrastructure. 

The FAA Authorization Act of 1994 attempted to address this issue however local and state governments have utilized a loophole in the 1994 Act as it applies to the “exclusivity” requirement where such taxes may be imposed if a single business outside of the airport is also subject to the tax.

The amendment being offered by Representatives Davis and Cohen would resolve this issue, by ensuring that revenue from any tax, fee, or charge levied upon any business located at a commercial service airport remains at the airport and is used solely for aviation related purposes.

Americans for Tax Reform urges House Transportation and Infrastructure Committee members to support inclusion of the Davis-Cohen Airport Tax amendment in the House FAA reauthorization bill. 

Sincerely,                                   

Grover G. Norquist                                                         
President                                                                       
Americans for Tax Reform

 

Photo credit: Phil Roeder

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