MEDIA ADVISORY: Revenue Stabilization Committee Meets to Discuss Aviation Fuel Tax Aircraft Excise Tax Exemptions, and Aircraft Registration Fees

MEDIA ADVISORY

October 26, 2016

Oklahoma City

 

Who:   Oklahoma Aeronautics Commission

What: Revenue Stabilization Committee Meeting

When: Thursday, October 27, 2016, from 10 a.m.

Where: 840 Research Parkway, Suite 450, Oklahoma City

Why: The purpose of the Revenue Stabilization Committee meeting is to discuss Oklahoma’s aviation revenues as the vital cornerstone behind the Oklahoma Airport System. It is a unique opportunity for industry officials to come together in one unified voice and meet with commissioners and other elected officials to discuss potential aviation revenue legislation and to remind users of the system and lawmakers of Oklahoma’s strong aviation heritage and how the industry continues to solidify our state as a worldwide leader in aviation, aerospace, and defense.

Background: Oklahoma’s aviation fuel tax is second lowest in the country, with average fuel collections for the last 5 years averaging $80,710 annually. Yet, Oklahoma’s airports rely heavily on federal grants as a source of funds, particularly the general aviation entitlement funding for those airports with at least ten based aircraft. Oklahoma airports have averaged $4.1M in state investment from Oklahoma Aeronautics Commission (OAC) revenues annually over the last seven years, though they struggle insofar as funding for future needs.  Airports in Oklahoma are receiving around $40.1M from the Federal Aviation Administration (FAA) annually including three primary commercial airports.  These are not guaranteed funds.  What would happen if the federal government was no longer able or refused to support our state’s general aviation airports and their critical infrastructure needs?

Oklahoma’s Airport System revenue shortfalls must be addressed through the aviation fuel tax. Our aviation fuel tax in Oklahoma is an abysmal .0008% of one cent, which is 8/100th’s of one penny.

Neighboring states charge between three and 135 times more in jet fuel taxes than Oklahoma. Conklin and deDecker recently compared effective state jet fuel taxes, including both fuel and sales taxes:

Arkansas 6.5% sales tax

Missouri .09c

Colorado .04c

Kansas 6.5% sales tax

New Mexico 5.124% sales tax

In Colorado, where jet fuel taxes total 12.7 cents per gallon, “There are no general funds used to meet the needs within the Colorado Aviation System, the needs are funded solely through the taxes collected by those actually using the aviation system.” (SOURCE: Colorado website) 

The federal/state/local investment history for the last seven years (2010 forward) total investment was $348M, averaging $49.7M per year.  The Federal investment was $281M, averaging $40.1M per year while the state investment was $29M, averaging $4.1M per year.  The local investment came in at $38M, averaging $5.4M per year.   

Future development costs for the Oklahoma Airport System are as follows:

Land:  $22M

Planning:  $13M

Buildings, Fuel Systems, & Equipment: $291M

Lighting & Navigational Aids:  $88M

Pavement:  $1,253M

Other (Safety Area, Fencing, Obstruction Removal, Access Road, etc.):  $133M

If one assumes the average investment from the federal, state, and local sources, Oklahoma airports will still be short $800M based on the above Oklahoma Airport System needs.

Pilots and members of the flying public are welcome and encouraged to assist the Oklahoma Aeronautics Commission by attending this public meeting to find solutions to fund the Oklahoma Airport System through the 21st century.

 

Oklahoma Aeronautics Commission

by Sandra Shelton, Director of Communications & Government Affairs

Phone: (405) 604-6900

110 N Robinson, Suite 200, Oklahoma City, OK 73102

sshelton@oac.ok.gov