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House Transportation panel finds favorable amendment to allow limited airport tax-data sharing for FAA grant compliance
Summary
The committee approved, by voice assent, an amendment that would let the Department of Taxes disclose tax revenue generated on airport premises to the Agency of Transportation when needed to show compliance with Federal Aviation Administration grant rules; recipients would remain bound by existing confidentiality protections.
Damien Leonard of the Office of Legislative Council told the House Transportation committee on May 19 that the amendment would add language to 32 V.S.A. § 3102 permitting the commissioner of taxes to disclose tax information about revenues generated on airport premises to the Agency of Transportation when necessary to demonstrate compliance with FAA grant funding requirements.
Leonard said the language is intentionally broad so it would cover current fuel taxes (aviation gas and jet fuel) and any other airport-generated taxes that federal rules might later require to be shown as used for aviation purposes. "This would add new language that would provide that the commissioner of taxes can share with the Agency of Transportation, or disclose information related to tax revenue generated on the premises of airports in the state if it's necessary to demonstrate compliance with FAA grant funding requirements relating to airport revenue," he said.
The committee heard that any Department of Taxes disclosures to AOT would be subject to the same statutory confidentiality obligations that bind Department of Taxes staff. Leonard warned of substantial penalties for improper disclosure, including potential loss of state employment and fines. "Anyone who receives tax information from the Department of Taxes is subject to all of the same confidentiality requirements," he said.
A committee member asked how AOT has obtained the data to date; Leonard said staff currently use a cumbersome memorandum-of-understanding process and that the amendment is intended to streamline that work. He cited other instances where statute includes similar exceptions when tax information is needed for program compliance or eligibility reporting.
Committee member Jean West asked whether the change was specific to sales taxes; Leonard replied the provision covers taxes charged at airports and that the drafting is broad to avoid repeated statutory updates if federal requirements change. When West asked about the vendors that generate fuel sales revenue, the committee discussed airport fuel sellers and aviation gas versus jet fuel taxation.
The chair moved to drop and raise the Ways and Means amendment on S.326; members signaled assent and the chair stated the amendment was found favorable by voice consent. The committee did not record a roll-call vote on the floor motion.
The amendment will proceed as a potential between-reading change on the miscellaneous motor vehicle bill and may be taken up again as the bill moves through floor consideration.
