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06/21/2024 02:40 PM
Pennsylvania House of Representatives
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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: March 2, 2022 10:37 AM
From: Representative Mike Carroll
To: All House members
Subject: Stabilize the Jet Fuels Tax and the Aviation Fuels Tax
The Jet Fuels Tax (jet-driven aircraft) and the Aviation Fuels Tax (propeller-driven aircraft) are the primary sources of revenue that fund grants for the preservation, upgrade, and construction of airport facilities and provide annual reimbursement of local real estate taxes to public airports. For FY 2022/2023, the Jet Fuels Tax is 2.0 cents per gallon and the Aviation Fuels Tax is 6.0 cents per gallon. However, the Jet Fuels Tax may fluctuate annually between 1.5 cents per gallon and 2.0 cents per gallon, while the Aviation Fuels Tax may fluctuate annually between 3.0 cents per gallon and 6.0 cents per gallon, based on the Producer Price Index for Jet Fuel and the annual adjustment calculation established under current law.  


While this annual fluctuation may seem small at first glance, it can cause a significant change in how much aviation grant funding and real estate tax reimbursement is available to our airports each year. This funding inconsistency makes it difficult for our airports to accurately budget and plan for future development projects. Additionally, any decrease in these tax rates can lead to planned grants being withheld since the projected revenue is no longer available, resulting in airports having to delay or cancel development projects altogether. 


To fix this problem, my legislation will set the Jet Fuels Tax at a flat rate of 2.0 cents per gallon and the Aviation Fuels Tax at a flat rate of 6.0 cents per gallon with no annual adjustment. This change will ensure that we can provide a consistent and sustainable source of funding for aviation development grants and real estate tax reimbursement for Pennsylvania’s airports well into the future. 


Please join me in this effort to stabilize the Jet Fuels Tax and the Aviation Fuels Tax to better support Pennsylvania’s airports. 

Introduced as HB2455