Says Legislation To Move Division Makes Sense

The South Carolina Aviation Association said it supports the state's general assembly bill SB 822, which will benefit general aviation by moving the Division of Aeronautics from the Department of Commerce to the Department of Transportation as in most other states. The bill also would allow taxes from jet fuel to be deposited in the state's Aviation Trust Fund and not in the General Fund. Currently only taxes from Avgas go to the Aviation Trust Fund, which is the source of funds for general aviation airport improvements.

Rep. Bob Walker (R-Landrum) and Sen. Phil Leventis (D-Sumter) filed the legislation to move the SC Aeronautics Division, currently a part of the Commerce Department, under the Department of Transportation. The House bill (HB 4537) was filed with 123 of the 124 House members as sponsors, so it is virtually assured of passage there. The Division of Aeronautics, along with the federal government and the local airport sponsor, share the responsibility for funding the maintenance and capital improvements at publicly-owned airports in the Palmetto State.

The SCAA, working with other stakeholders, claims it has made significant progress in adding to the funding for Aeronautics. A 1997 Department of Revenue administrative interpretation, pressed for by the SCAA, has resulted in the dedication of taxes collected on aviation gasoline to the state’s Aviation Trust Fund. This fuel tax, although providing some $650,000 in funding for airport projects annually, is only imposed on avgas due to the current language of state statute. Acording tio SCAA, Legislators Walker and Leventis’ bill would correct this inequity and ensure that all jet fuel taxes paid by general aviation aircraft are paid into the Aviation Trust Fund.

Other aviatin organizations are supporting the state's proposed action, as NBAA is backing South Carolina's effort to realign responsibility for aviation issues within the state and urges Members operating in South Carolina to contact their state senators and indicate their support for SB 822.

Review the bill text at www.scstatehouse.net/sess115_2003-2004/bills/822.htm

Although the SCAA and AOPA also championed 2000 legislation providing $500,000 annually toward airport capital projects, SCAA believes that the inability to obtain money for new capital improvements will remain the status quo so long as the agency is part of the Department of Commerce. Over past years, the group claims state funds for airport capital improvements and maintenance have declined from an average of $725,250 in 1991-95 to less than $500,000 in 2000. This loss of revenue means that all airports, especially those more rural airports whose sponsors are generally smaller municipalities, must delay much-needed improvements. SCAA urges its members to contact their State Senator in support of Sen. Leventis’ Senate counterpart, SB 822, to the House bill.

FMI: www.scaaonline.com