H.R. 2939 is intended to overturn a 2014 FAA rulemaking and "re-establish Congressional intent and 29 years of federal interpretation that the limitation on the use of sales taxes collected on aviation fuel for airport purposes is applied to excise taxes on aviation fuel only, and not to general sales taxes that states and localities impose on all goods."
This legislation was brought to the attention of TAMC staff by the Self Help Counties Coalition. The overriding concern is delivering on the promise to voters when they approved the Measure X project list. Any proposal that diminishes the amount of funding coming to TAMC through the 3/8 of a cent sales tax diminishes TAMC's ability to secure matching funds in order to deliver projects. It could also set a precedent for other entities to act in a similar way, further reducing the amount of funding available for the voter-approved intention.
The statewide impact of the FAA rule is estimated by the Board of Equalization (BOE) to be $53 million per year. Although Monterey County only has a few small airports (including the Monterey Regional Airport), and the actual amount of funding at risk is likely to be minimal, the reason the Executive Committee voted to recommend the Board support this legislation is based on the principle of standing firm to protect Measure X revenues for the purpose intended by the voters.
Attachment 1 is a summary of the 2014 FAA rulemaking and the legislation introduced by Representative Grace F. Napolitano (CA-32) on May 23, 2019. Attachment 2 is the draft bill (H.R. 2939) and Attachment 3 is a redline showing how the bill will change current law. Online as web attachment is the Congress Member's news release.