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House approves aviation fee and fuel tax changes aimed at bolstering Utah airports
Summary
Lawmakers passed a linked package of aviation measures: SB139 reduces certain registration fees for private aircraft in phased steps while SB132 raises aviation fuel taxes on private noncommercial operators to fund aeronautical operations and airport improvements; sponsors say the changes aim to bring aircraft home and fund rural airports.
The Utah House on March 1 approved a pair of Senate bills designed to reshape funding for privately owned aircraft and airport operations.
Representative Hickman, sponsor of the package, described SB139 as lowering the statutory uniform fee levied on private aircraft in a phased approach (from 1% down to 0.4% over several years) and adding flat registration fees by aircraft type. He said the change was intended to make Utah more "aircraft friendly" and attract aircraft that are currently domiciled in neighboring states back to Utah.
On SB132, Hickman explained an increase in the aviation fuel tax for private noncommercial operators in three increments to reach $0.09 per gallon by July 1, 2001. He said additional revenue would be allocated to the Utah Department of Transportation's aeronautical operations account and could be used for maintenance, improvements and to pay debt service on airport projects. When asked about revenue, members were told an approximate benchmark of $100,000 in annual revenue per penny of tax.
Members asked whether the package was a net increase or decrease for various aircraft; Hickman said the impact varies by aircraft but that, overall, the package should reduce net fees and attract more aircraft to be based in Utah, increasing total receipts. Representative Hatch declared a conflict as an aircraft owner and pilot.
Final roll calls recorded SB139 passing unanimously, and SB132 passing after debate with a reported 67 yes to 4 no votes. Sponsors and supporters argued the revenue and fee adjustments would shore up funding for smaller publicly used airports around the state.
Next steps: Both measures were signed by the Speaker and entered on the House Journal; they will be returned to the Senate for any further action required.
