Commercial air operations

From the 2024 DOR Tax Exemption Study

82.42.030(4,5) - Commercial air operations Description The aircraft fuel tax does not apply to fuel used by commercial air carriers, supplemental carriers licensed under a certificate of public convenience, or a local service commuter if the fuel is delivered directly into the aircraft fuel tanks. Purpose To lower the cost of air carrier operations. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $27.810 $26.980 $26.070 $25.250 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $24.730 $26.070 $25.250 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the aircraft fuel tax collections growth rate reflected in the Transportation Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Licensing, Fuel tax data - Transportation Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Other Year Enacted: 196