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Utah Senate advances aviation fuel tax refund aimed at boosting Salt Lake hub operations
Summary
The Utah Senate moved first substitute Senate Bill 49 to third reading after debate over a refund of a 3¢-per-gallon aviation fuel tax above a 90 million‑gallon threshold. Sponsors say the change is intended to encourage airline growth in Salt Lake City; senators raised concerns about impacts on rural airport funds and fairness to other carriers.
The Utah Senate voted on Feb. 16 to advance first substitute Senate Bill 49, a measure that would refund the 3¢ portion of the state aviation fuel tax on gallons above a 90,000,000‑gallon threshold to encourage growth of airline operations at the Salt Lake City hub.
Senator Valentine, the bill sponsor, told colleagues the measure is intended to make operating in Salt Lake City more economically viable for carriers and said the committee’s research — including Department of Transportation Form 41 data and unpublished Legislative Research material — showed Delta’s profitability at Salt Lake City lagged its domestic average. “In the Salt Lake City market, it's at 3.3%,” Valentine said, contrasting that with a 9.5% domestic system…
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