HomeMy WebLinkAboutMINUTES - 06051990 - 1.67 �= x-06 e
TO: BOARD OF SUPERVISORS 5E L
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FROM: Phil Batchelor, County Administrator Costa
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DATE: May 30 , 1990 Count
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SUBJECT- LEGISLATION: SB 2260 (Garamendi)
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECONIl4ENDATION
Adopt a position in SUPPORT of 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-
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 would repeal this
exemption. As amended May 15 , 1990, SB 2260 would do all of the
following:
1. Repeal the exemption for airlines.
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:
CONTINUED ON ATTACHMENT-AYES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
y�APPROVE OTHER
v
SIGNATURE(S):
ACTION OF BOARD ON June 5 , 1990 APPROVED AS RECOMMENDED y
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.
CC: ATTESTED D
PHIL BATC LOR,CLERK OF THE BOARD OF
Please See Page 2. SUPERVISORS AND COUNTY ADMINISTRATOR
D -
M382 (10/88)
BY DEPUTY
* 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.
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 and is currently on referral to the Senate
Appropriations Committee.
CC: Senator John Garamendi
County Administrator
Public Works Director
Manager of Airports