Alex Padilla: “I rise to introduce State and Local General Sales Tax Protection Act. This legislation would clarify congressional…”

“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.…”