HomeMy WebLinkAboutMINUTES - 06261990 - 1.27 Y1-®21
TO: BOARD OF SUPERVISORS Contra
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FROM:
Costa
Phil Batchelor, County Administrator
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DATE: June 19, 1990 -cc U
SUBJECT: LEGISLATION: SB 2260 (Garamendi)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
Indicate that the Board of Supervisors continues to SUPPORT SB
2260 by Senator Garamendi which would repeal the exemption
airlines presently have from paying the 2 cent per gallon jet
fuel license tax and dedicates the additional revenue to specific
purposes.
BACKGROUND:
On June 5, 1990 the Board of Supervisors voted to support SB
2260, as it was amended May 15, 1990. On May 30, 1990 the bill
was amended.
Under current law there is a license tax of 2 cents per gallon on
each gallon of aircraft jet fuel sold by an aircraft jet fuel
dealer to an aircraft jet fuel user. However, airlines which are
engaged in the business of transporting persons or property for
hire or compensation under a certificate of public convenience
and necessity issued pursuant to the authority of the laws of
this state, of the United States, or of any foreign country are
exempt from paying this tax.
Senator Garamendi has introduced SB 2260 which, as amended May
30, 1990, would repeal this exemption and do all of the
following:
1. Repeal the exemption for airlines.
CONTINUED ON ATTACHMENT:YeS YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
KAPPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON Ji inp 2 6, 1 9 9 n APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
J
CC: ATTESTED UN 2 6 1990
PHIL BATCHELOR,CLERK OF THE BOARD OF
Please See Page 2 . SUPERVISORS AND COUNTY ADMINISTRATOR
M382 (10/88)
BY DEPUTY
2. Transfer all funds received as a result of repealing this
exemption to the Aeronautics Account in the State
Transportation Fund to be allocated for the following
purposes:
* To mitigate significant adverse environmental impacts
affecting commercial and general aviation airports.
* To address commercial and general aviation airport
concerns involving airport safety, maintenance, and
capacity enhancement needs.
* To improve ground transportation to and within
commercial and general aviation airports.
* For airline industry investigation, market information
and other activities specified in Senate Bills 1723 ,
2256, 2257, 2258, and 2259 if the Legislature makes an
appropriation specifically for these purposes.
3 . The exemption would still apply to jet fuel sold to an
airline for a flight whose first destination is a foreign
destination at any time that international fuel costs exceed
domestic fuel costs by less than two cents per gallon and
both foreign and domestic jet fuel are available at the same
airport.
4. Any tax paid on jet fuel which is not subject to the tax can
be rebated on an annual basis following submission of
documentation required by the State Board of Equalization
detailing the amount of jet fuel purchased by month which
was not subject to the tax.
5. The bill also includes an urgency clause and thus would
become effective upon signature by the Governor.
The Manager of Airports, Hal Wight, recommends that the Board of
Supervisors support SB 2260 since it would make funds available
to address additional airport problems. We concur with this
recommendation and urge the Board of Supervisors to support SB
2260 .
SB 2260 passed the Senate Transportation Committee on April 17,
1990 by a vote of 7: 2. The bill failed passage in the Senate
Appropriations Committee on June 7 , 1990 by a vote of 4:7 but may
still be granted reconsideration.
cc: Senator John Garamendi
County Administrator
Public Works Director
Manager of Airports