Legislature(1993 - 1994)
1994-03-14 Senate Journal
Full Journal pdf1994-03-14 Senate Journal Page 3186 SB 261 The Finance Committee considered SENATE BILL NO. 261 "An Act relating to municipal sales and use taxes involving air carriers; and providing for an effective date" and recommended it be replaced with CS FOR SENATE BILL NO. 261(FIN), entitled: "An Act relating to municipal taxes and fees on the air transportation of individuals or goods by federally certificated air carriers; and providing for an effective date." and further attaches a Letter of Intent. Signing no recommendation: Senators Frank, Pearce, Cochairs, Senators Kelly, Kerttula, Rieger. Signing do pass: Senator Sharp. Signing do not pass: Senator Jacko. Letter of Intent for Senate Bill No. 261 It is the intent of the Legislature to define the powers of municipalities to tax commercial aviation activities in a manner consistent with federal aviation law. Municipalities may not levy taxes, directly or indirectly, on passengers and air freight carried by commercial air service companies holding Federal Aviation Administration certificates. Municipalities may levy other taxes, currently permitted under federal law, such as landing taxes, fuel flowage fees, property taxes, and taxes on the sale of goods and services which are incidental to air transportation such as food provided to airline passengers. 1994-03-14 Senate Journal Page 3187 SB 261 Federal taxes on passengers and air freight, paid by airport users, are returned to the States through the Airport and Airways Trust Fund for the construction of new airport facilities. This was one reason for federal limitation on the rights of states and municipalities to tax air transportation. Previous zero fiscal notes apply to the committee substitute. SENATE BILL NO. 261 was referred to the Rules Committee.