The proposal would direct part of California's jet fuel tax revenue to airport funding and aviation education, with airport shares based on reported fuel totals.
The State Controller would move a specified share of existing jet fuel tax revenue into the state's airport fund each year to support airports and other aviation purposes.
After administrative costs, the money would be split among airports and aviation education. A $500,000 yearly grant set-aside for certain airports would come from the largest share until January 1, 2032.
Every public or private use airport where jet fuel is sold or used would report yearly fuel totals so the state could calculate its funding share.
The State Controller would transfer specified jet fuel tax revenue into the state's airport fund. The transfer would cover taxes on jet fuel sold, stored, or used in California. The transfer would cover revenue from the specified state tax components described as equaling 1.25 percent of the total statewide sales and use tax rate, less refunds. The money would have to support aviation purposes consistent with the cited federal laws. Transfers would occur on or before September 1 each year, using reported revenue from the immediately preceding fiscal year.
The California Department of Transportation's Division of Aeronautics would divide the transferred money among airports and aviation programs. From the 75 percent share, $500,000 annually would fund grants for rural nonhub commercial airports and for general aviation airports. After administrative costs, 75 percent would go to public and private use airports where jet fuel is sold or used, based on their reported fuel totals for the previous calendar year. Another 15 percent would go to general aviation airports, a federally defined category, through individual airport accounts under a process set by the division. One percent would fund aviation education grants. Priority would go to underrepresented students, women, veterans, and people with low incomes. Nine percent would fund existing grant programs serving airports classified as nonhub or small hub under federal airport categories tied to passenger traffic. Allocations would occur annually. The division could use up to $1 million for administration in the first year and $600,000 in each later year. Unused administrative money would return proportionally to the 75 percent airport share.
Airports would report annual jet fuel totals to the California Department of Transportation's Division of Aeronautics. All public and private use airports where jet fuel is sold or used would have to report. Reports would include the total gallons of jet fuel sold or used annually. The division would calculate each reporting airport's share of fuel tax revenue. Local agencies would receive reimbursement under existing procedures if the Commission on State Mandates determines that the bill imposes reimbursable costs. Airports would report the previous calendar year's fuel totals by March 31.
No hearings or votes scheduled.