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Senate raises aviation fuel taxes to bolster Aeronautic Trust Fund for airport maintenance
Summary
Senate Bill 178 increases Avgas and jet fuel tax to 7'per gallon to strengthen the South Dakota Aeronautic Trust Fund for runway and safety projects; supporters said the fund has not been raised since 1995 and small airports have closed without sustainable funding.
The South Dakota Senate approved Senate Bill 178, raising the avgas tax from 6'to 7'per gallon and increasing the jet-fuel tax from 4'to 7'per gallon to replenish the South Dakota Aeronautic Trust Fund that provides state matching dollars for federally funded airport projects.
Senator Hoehn, sponsor, said the Aeronautic Trust Fund pays the state match (typically half of the remaining 5-10 percent after federal grants) for projects like runway construction, lighting, apron work and airport fencing. He told senators that neither tax has been increased since 1995 and the proposed change would add approximately $500,000'$600,000 per year to the fund, depending on flight activity.
Supporters said small airports across the state have closed because of funding shortages and that sustainable matching funds are necessary to preserve air service used for economic activities such as medical flights, hunting season traffic, and outreach clinics. Senator Kolbeck and others said the levy is a user fee: "If you don't fly, you don't pay," Kolbeck said.
Opponents raised some objections, and the floor proceeded under a two-thirds threshold because the measure increases taxes. The roll-call tally recorded 28 yeas and 7 nays; the President declared SB 178 passed after the clerk reported the count. The title was deemed correct.
Ending: SB 178 increases aviation fuel taxes to strengthen state matching funds for airport infrastructure; implementing agencies will apply the additional revenue to the Aeronautic Trust Fund.
