Aircraft Owners and Pilots Association
421 Aviation Way
Frederick, MD 21701
April 28, 1997
FREDERICK, MD - Alabama Governor Fob James has given his endorsement to an Alabama House bill that would increase support for Alabama airports by raising the state's cap on aviation fuel excise taxes and by eliminating the airlines' exemption from that tax.
Promising "100% support" for The Alabama Airport Improvement Program Act of 1997 - House Bill 212 - Governor James delivered his endorsement in Montgomery last Thursday during welcoming remarks at the Alabama Department of Aeronautics Airports Conference.
All increases would affect the current providers and users of aviation services, not the general taxpayer.
The change is supported by the national Aircraft Owners and Pilots Association (AOPA), whose members pay such special taxes to state and federal governments to fund airport and air traffic control services and improvements.
Alabama law currently permits the state to collect only $600,000 a year in these special aviation fuel taxes that fund the state's Airport Development Fund. Airlines with a "hub" operation in Alabama are exempted from any excise tax on their voluminous purchases of jet fuel in the state - some 17 million gallons annually.
House Bill 212 would allow the state to raise up to $1.5 million from these special taxes on aviation over a three-year period.
"Governor James recognizes the importance of improving and maintaining Alabama's statewide transportation infrastructure," said Bob Minter, southeast regional representative for the Aircraft Owners and Pilots Association, the nation's largest aviation organization.
"Alabama's system of airports connects the state's rural communities with the nation's vast air transportation system. These airports are also an important part of state efforts to attract industrial development to Alabama."
Widespread support for the HB 212 from across the state has included Alabama's powerful farm association. Alabama's 4,000+ pilots supported the bill through the second-largest citizens' letter-writing campaign to Alabama legislators this year. The bill is currently stalled in the House Rules Committee.
"With about half the revenue from Alabama's aviation fuel taxes going to administrative overhead, the remainder amounts to one of the lowest levels of state airport support in the nation," said Bill Dunn, AOPA vice president for regional affairs, speaking for AOPA Legislative Action. "If Alabama is to preserve its airports, the state can no longer afford to cap revenues and exempt the airlines from the aviation taxes others are paying. "The enactment of HB 212 will help expand the airport infrastructure in Alabama, a necessity for the 21st century."
AOPA Legislative Action was established to foster and promote general aviation in the U.S. for the benefit of all Americans. It is affiliated with the 340,000-member Aircraft Owners and Pilots Association. Some 4,000 pilots in Alabama are members of AOPA.
-AOPA LEGISLATIVE ACTION-
97-2-081