MPA LEGISLATION REPORT
September 2005

GREETINGS! First, Here's an update from Washington, D.C. The U.S. House Appropriations Committee directs the U.S. DOT to set aside up to $3 million to reimburse fixed base operators and general aviation ground support services at Ronald Reagan Washington National Airport (DCA) and other airports within 15 miles of DCA, for losses sustained while closed following the 9/11 terrorist attacks.

Secondly, The House Appropriations Committee approves a $14.427 billion budget for FAA, increasing the agency's funding over the Bush Administration's request and raising the amount of funding provided by the general fund.

Among its other provisions include the general fund would pay for $3.2 billion of the FAA's budget, covering almost 40 percent of the agency's operational costs, more than double the amount that the Administration proposes;
" A ban on FAA from imposing new user fees in the next year.
" Nearly $8.2 billion for FAA operations, a $480 million, or 6.2 percent, boost but some $8 million less than requested by FAA.

Thirdly, National Air Transportation Association (NATA) cautions that a provision in legislation to reauthorize the nation's surface transportation programs (the "Highway Bill") would drastically alter the way the taxes on aviation jet fuel are collected. Under the proposal, all aviation jet fuel would be taxed at the same rate as diesel fuel used in highway vehicles, 24.4 cents per gallon.
Purchasers of the fuel would have to submit a claim to the Internal Revenue Service (IRS) to receive the difference between the 24.4 cents per gallon paid and the 21.8 cents per gallon owed.

Fourthly, NATA and the National Business Aviation Association express concern that FAA is considering allowing the Aviation Safety Reporting System (ASRS) to lapse in the current budget debate.


Fifthly, Here's an update concerning Missouri Aviation. The only Airports and Aviation Bills are as follows:

93nd General Assembly, 1st Regular Session (2005)

Bills Indexed by Subject
AIRCRAFT AND AIRPORTS


HB 38 --- Sponsor: Jack Jackson
Authorizes an income tax designation to the Airborne Law Enforcement Fund

HB 306 --- Sponsor: Tom Dempsey
Extends the expiration of the aviation jet fuel sales and use tax exemption

SB 169 --- Sponsor: Charles Gross
Renews aviation sales tax until 2010 and technical addition to title section 305.230.

HB 713 --- Sponsor: Nathan Cooper
Extends sunset of transfer of jet fuel tax to the aviation trust fund and increases air control tower funding.

SB 396 --- Sponsor: Jason Crowell
Extends sunset of transfer of jet fuel tax to the aviation trust fund and increases air control tower funding.

SB 498 --- Sponsor: Robert Mayer
Amends sales and use tax exemption for aircraft sales to not-for-profit organizations.

Note: Here's your web site address for Texas Legislation:
www.texas.gov.
Look for Transportation-Aviation, to search all Aviation Bills.

Note: Here's your web site address for Illinois Legislation:
www.illinois.gov.
Look for Transportation-Aviation, to search all Aviation Bills.

Now, In Conclusion, Remember, we as USPA, MPA, EAA, AOPA, or any other State Pilot Associations of which you may be a member, all have a powerful voice, be it here in Missouri, Indiana, Texas, or whatever state you may represent. Every group of pilots and taxpayers carries a strong voice to Washington, D.C., and on the State and Local Level.

So Let's not forget to exercise our privileges, and continue to make a "Difference for General Aviation."

UNTIL NEXT TIME!

SAFE FLYING!

Larry G. Harmon
Legislation Chairman
E-mail address: MPALHARMON228@aol.com


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