Fiscal Note

HB0414 - Aviation Amendments

State Impact:
This bill increases the tax rate on general aviation fuel purchased in the state from 9 cents to 17 cents per gallon. Registration fees and fees in lieu of the ad valorem tax are also restructured with some decrease and some increases. It is estimated that this bill could increase the Transportation Restricted Aeronautics Account by $437,900 in FY 2008 and by $875,700 FY 2009.

Funding SourceFY 2007
Approp.
FY 2008
Approp.
FY 2009
Approp.
FY 2007
Revenue
FY 2008
Revenue
FY 2009
Revenue
Transportation Fund Restricted$0$0$0$0$437,900$875,700
   Total
$0

$0

$0

$0

$437,900

$875,700

Individual, Business and/or Local Impact:
There will be an increase in taxes paid by individual and business entities purchasing aviation fuel in the State. Individuals registering aircraft in the State will see changes in the registration fees and the fees in lieu of the ad valorem tax. While some aircraft fees will increase and some will decrease, the net result is a decrease in fee revenue for local governments. Local governments could see net revenue losses estimated at about $1.7 million in FY 2009 and about $850,000 in FY 2008.

2/16/2007, 3:52:10 PM, Lead Analyst: Wilko, A.Office of the Legislative Fiscal Analyst