[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Page S2990]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. PADILLA (for himself and Mrs. Feinstein):
  S. 2351. A bill to amend title 49, United States Code, to clarify the 
use of certain taxes and revenues; to the Committee on Commerce, 
Science, and Transportation.
  Mr. PADILLA. Madam President, I rise to introduce State and Local 
General Sales Tax Protection Act. This legislation would clarify 
congressional intent around a 1987 amendment to the Federal Aviation 
Administration's authorization regarding the use of local excise taxes 
on aviation fuel for airport purposes.
  In 2014, the FAA implemented a policy change to require State and 
local governments to use general sales taxes collected on aviation fuel 
for airport purposes. This contradicted congressional intent clearly 
stated in the 1987 conference report and 29 years of practice, which 
applied this requirement only to local excise taxes on fuel and not to 
other taxes imposed by State and local governments.
  This legislation would overturn the 2014 FAA policy and remove any 
ambiguity in Federal interpretation by distinguishing State and local 
sales tax measures of general application from aviation fuel excise 
taxes.
  In my home State of California, local government sales taxes are 
voter-approved by a two-thirds margin for specific purposes. Diverting 
this money would be a violation of the State's constitution and the 
will of its voters. This 2014 FAA rulemaking, if enforced, is estimated 
to divert tens of millions of dollars away from voter-approved purposes 
like local transportation, first responders, education, and social 
programs every year. It is an assault on State and local control of 
general application sales tax measures.
  The 2014 FAA rulemaking would also impose an unfunded mandate on 
States and local governments that would be required to implement a 
burdensome tracking system to segregate taxes on aviation fuel from 
other taxable sources.
  Furthermore, in recognition of this error, the FAA included in its 
recommendations to Congress that the clarification provided in this 
legislation be included in an FAA reauthorization bill.
  I look forward to working with my colleagues to enact the State and 
Local General Sales Tax Protection Act to protect every State and local 
government that have or will have general sales taxes that include 
aviation fuel.
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