Page 50 - Planning and Design of Airports

28 Airp o r t Pl anning

and not from the Federal Airport Act. The deficiencies in airport and
airway development were documented in several reports. It was the
consensus of industry and government that the only way to provide
the funds needed for airports and airways was through increased or
new taxes imposed upon the users of the air transport system. It was
also argued that the revenues from these taxes should be specifically
earmarked for aviation and not go to the general fund. The concept of
establishing a trust fund similar to that of the national highways pro-
gram was agreed upon. Finally after much debate in Congress, the
Airport and Airway Development Act of 1970 and the Airport and
Airway Revenue Act of 1970 were enacted (Public Law 91-258).
As finally passed, the act was divided into two sections: Title I
detailed the airport assistance programs and established a financing
program for airport grants, airways hardware acquisition, and
research and development; Title II created the Airport and Airway
Trust Fund and established the pattern of aviation excise taxes which
would provide the resources upon which the Title I capital programs
would depend through 1980. The excise taxes adopted consisted of a
tax on domestic passenger tickets, a head tax on international pas-
senger departures, a flowage tax on all fuel used by general aviation,
and tax on all air cargo waybills. In addition, an annual aircraft regis-
tration tax was levied on all aircraft (commercial and general avia-
tion) plus an annual weight surtax for all aircraft weighing in excess
of 2500 lb. Finally, revenues from existing taxes on aircraft tires and
tubes were transferred from the Highway Trust Fund to the Airport
and Airway Trust Fund.
The amount of these excise taxes were changed in the Omnibus
Budget Reconciliation Act of 1990 (Public Law 101-508) and currently
consists of a 10 percent tax on domestic passenger tickets, a $6 head
tax on international passenger departures, a 17.5 cents a gallon flow-
age tax on all fuel used by general aviation, and a 6.25 percent tax on
all air cargo waybills.
Significant changes from the Federal Airport Act were as follows:

l. The provision of funds to local agencies for airport system
planning and master planning
2. The emphasis on airports served by air carriers and general
aviation airports to relieve congested air carrier airports
3. The provision of funds for commuter service airports
4. The requirement that the FAA issue airport operating certifi-
cates to ensure that airports were adequately equipped for
safe operations
5. Provision of requirements to ensure that airport projects did
not adversely affect the environment and were consistent
with long-range development plans of the area in which the
project was proposed