House of Representatives

HB 2369

flight property tax; distribution

Sponsors: Representative Marsh, Senator Bundgaard,

Representative Farnsworth, et al

DPA	Committee on Military, Veterans' Affairs and Aviation
DPA	Committee on Appropriations
X	Caucus and COW
	As Passed the House

HB2369 relates to the deposit of flight property tax (FPT) revenues by amending Laws 1999, First Special Session, Chapter 3, Section 9.

History

Laws 1997, Chapter 3, Section 5 established the amount the State Treasurer was required to deposit of the revenues from the flight property tax.

Provisions

· Requires that the State Treasurer deposit 50 per cent of the revenues from the flight property tax in the state general fund and 50 per cent in the aviation fund in FY 1997-98 through FY 2000-01, one third of the revenues from the flight property tax in the state general fund and two thirds in the Aviation fund in FY 2001-02 and one fourth of the revenues from the flight property tax in the state general fund and three fourths in the aviation fund in FY 2002-03.

· Stipulates the House Speaker and the Senate President each appoint three members of their houses to make recommendations on the expenditure of the general fund portions of the aviation fund deposits among rural airports, reliever airports and to enhance the aviation system of this state.

HB 2369 was amended in the Military, Veteran Affairs and Aviation committee as follows:

· Stipulates that 25 per cent of the monies deposited in the aviation fund shall be only for rural or general aviation airports or for special needs of airports.

· Establishes a state aviation advisory committee to make recommendations to the board and the department regarding priorities for distributing monies, comprised of the three members of the House of Representatives, appointed by the House Speaker and three members of the Senate appointed by the Senate President.

· Includes a delayed repeal date of June 30, 2002.

· Includes a legislative intent stating that from FY 2002-03 and on all revenues from the flight property tax shall be deposited in the state aviation fund.

HB 2369 was amended in the Appropriations Committee as follows:

· Requires the State Aviation Board to set aside and distribute at least 25% of the flight property tax monies deposited in the state aviation fund to publicly owned and operated airport facilities located in rural areas of the state.

· Makes the primary air carrier airport in any county with a population greater than 1.5 million ineligible to receive monies from the state aviation fund.

· Requires the Department of Transportation to submit a report to the JLBC detailing requests the Department received for funding and the monies distributed from the aviation fund in the previous fiscal year.

· Strikes out language requiring the Speaker and the President to appoint three members from each House to make recommendations on the expenditure of the general fund portion of the aviation fund deposits among rural airports, reliever airports, etc.

· Adds language requiring the deposit of only 10% of flight property tax revenues into the state general fund in fiscal year 2003-2004 and thereafter. The table below details the distribution of flight property tax revenues between the state general fund (GF) and the state aviation fund (SAF) under current law and the various versions of the bill.

	Current Law		Underlying Bill		MVAA Amendment		Approps Amendment
	GF	SAF	GF	SAF	GF	SAF	GF	SAF
Current FY	50%	50%	50%	50%	50%	50%	50%	50%
FY 2001-02	50%	50%	33%	66%	33%	66%	33%	66%
FY 2002-03	50%	50%	25%	75%	0%	100%	25%	75%
FY 2003-04 & Thereafter	50%	50%	unspecified	unspecified	0%	100%	10%	90%

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44th Legislature

Second Regular Session 3 February 28, 2001

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