Chapter 61 - Aviation Development
A. Preliminary Provisions
B. Reimbursement of Local Real Estate Taxes for Public Airports
C. Jet Fuels Tax
D. Aviation Development Loan Program
E. Bond Issuance
6101. Short title of chapter.
6102. Administration of chapter.
6103. Service fees.
6104. Construction of chapter.
|§ 6101. Short title of chapter.|
This chapter shall be known and may be cited as the Aviation Development Act.
|§ 6102. Administration of chapter.|
The department shall, in the manner provided by law, promulgate the rules and regulations necessary to carry out this chapter, and the department shall administer this chapter in relation to the conduct and operation of State aviation programs.
|§ 6103. Service fees.|
(a) General rule.—The department may by regulation establish appropriate fees for aviation services including:
(1) Crash fire rescue training.
(2) Landing area site inspections.
(3) Issuance of private airport licenses.
(4) Special aviation license board meetings.
(b) Recoupment of certain costs.—The department may recoup any costs incurred in the placement of appropriate runway markings on airport runways and highway directional signs to airports. The costs of highway direction signs shall be recouped from the Aviation Restricted Account.
(c) Prohibition.—The department may not impose or collect a fee for the privilege of landing aircraft at State-owned airports on persons engaged in flight instruction or on noncommercial flight operations.
|§ 6104. Construction of chapter.|
(a) Federal programs unaffected.—Nothing in this chapter shall be construed to affect or impair the distribution or use of any Federal aviation moneys allocated pursuant to Federal aviation assistance programs.
(b) Alleviation of unemployment.—It is the declared policy of this Commonwealth that the money raised by the tax imposed by this chapter be used, to the greatest extent possible, to create jobs and to rehire the unemployed in this Commonwealth. In order to reach this goal, firms with facilities based in this Commonwealth shall be actively solicited to make bids on contracts to furnish products and materials including, but not limited to, steel and steel products, to be used in the projects funded through this chapter.
REIMBURSEMENT OF LOCAL REAL ESTATE TAXES
FOR PUBLIC AIRPORTS
6121. Tax on aviation fuels.
6122. Allocation of funds
6123. Denial of reimbursement.
6124. Agreement of maintenance.
|§ 6121. Tax on aviation fuels.|
(a) Imposition.—There is hereby imposed, effective July 1, 1984, an additional State tax of 1.5¢ per gallon, or fractional part thereof, on all fuels used or sold and delivered by distributors within this Commonwealth for use as fuel in propeller-driven piston aircraft or aircraft engines as provided for in the Act of May 21, 1931 (P.L.149, No.105), known as The Liquid Fuels Tax Act.
(b) Annual adjustment.—Beginning on January 1, 1985, and each January 1 thereafter, the tax imposed under this section shall be adjusted annually and shall be set for that calendar year. The adjustment shall be based upon the percentage change of the Producer Price Index for Jet Fuel, as determined by the Bureau of Labor Statistics for the United States Department of Labor for the most recent 12 month period available as of the immediately preceding November 1. For every 10% increase or decrease in the Producer Price Index, there shall be a 0.1¢ per gallon, or fractional part thereof, increase or decrease in the rate of tax. The rate of tax shall be determined by the Secretary of Revenue, who shall cause such rate to be published as a notice pursuant to 45 Pa.C.S. § 725(a)(3) (relating to additional contents of Pennsylvania Bulletin) in the Pennsylvania Bulletin on or before December 15 of each year. The tax, as adjusted, shall never exceed 6¢ per gallon, or fractional part thereof, nor shall it be less than 3¢ per gallon, or fractional part thereof.
(c) Construction of section.—This section shall be construed in conjunction with the Liquid Fuels Tax Act, which shall apply to the collection, administration and enforcement of the tax imposed under this section.
|§ 6122. Allocation of funds.|
(a) Grants.—Each year the owner of a public airport shall be eligible for a grant from the local area estate tax reimbursement portion of the Aviation Restricted Account. Except as otherwise provided in subsection (d), the grant shall be equal to the amount of local real estate tax paid on those portions of an airport which are aviation-related areas.
(b) Application form.—The owner of a public airport shall apply for the grant provided for in this section in the manner and on the forms as prescribed by the department.
(c) Notice to State Treasurer.—The department, following its review of each application for a grant, shall notify the State Treasurer of each applicant who qualified therefor and the amount of the grant to which each applicant is eligible. Within 30 days of receiving the notification, the State Treasures shall issue the grant to the qualifying applicant.
(d) Limit on grant.—The total grant of moneys in any one year shall not exceed a sum equal to the moneys collected on the sale of fuels sold for use in propeller-driven piston aircraft or aircraft engines for the previous year, plus any income earned on the fund. In the event that there are insufficient funds in the fund to meet the total annual grants provided for under this section, the department shall make such grants on a pro rata basis. In the event that there are surplus funds in the fund with which to meet the total annual grants provided for under this section, the department may make additional grants to public airport owners, which shall be used for airport development poses.
(e) Administrative costs.—The costs of administering the grant program under this section shall be paid out of the revenues described in section 5103(c) (relating to Aviation Restricted Account). The costs of administering this program shall not exceed 10% of such revenues collected for that year.
|§ 6123. Denial of reimbursement.|
Any applicant found not eligible for a grant, or for any portion thereof, shall receive written notice that his application has been denied and the reason for the denial.
|§ 6124. Agreement of maintenance.|
(a) Terms.—Prior to applying for an appropriation under section 6122 (relating to allocation of funds), every public airport owner shall enter into an agreement with the department. This agreement shall specify that the owner shall continue to maintain the property for which the grant will be sought as an airport, as least equal in size and capacity to its size and capacity as of the owner's initial grant application, for a period of not less than ten years.
(b) Covenant.—The agreement specified under this section shall be a covenant which runs with the land and, upon the acceptance of any grant, the covenant shall be deemed extended for one additional year.
(c) Violation.—Any violation of the agreement shall make the owner liable for the repayment of the total appropriation for that year plus a penalty of two times the grant. In any action wherein the owner is found to have violated the agreement, the department shall receive all costs of prosecution.
JET FUELS TAX
6131. Tax on jet fuels.
|§ 6131. Tax on jet fuels|
(a) Imposition.—There is hereby imposed, effective July 1, 1984, a State tax of 1.1¢ per gallon, or fractional part thereof, on all fuels used or sold and delivered by distributors within this commonwealth for use as fuel in turbine-propeller jet, turbojet and jet-driven aircraft and aircraft engines. The tax shall be increased by 0.2¢ per gallon, or fractional part thereof, effective January 1, 1985, and by 0.2¢ per gallon, or fractional part thereof, effective July 1, 1985. Distributors shall be liable to the Commonwealth for the collection and payment of the tax imposed by this section. The tax shall be collected by the distributor and shall be paid to the Commonwealth only once with respect to any fuels.
(b) Annual adjustment.—Beginning on January 1, 1986, and each January 1 thereafter, the tax imposed under this section shall be adjusted annually and shall be set for that calendar year. The adjustment shall be based upon the percentage change of the Producer Price Index for Jet Fuel, as determined by the Bureau of Labor Statistics for the United States Department of Labor, for the most recent 12 month period available as of the immediately preceding November 1. For every 10% increase or decrease in the Producer Price Index, as determined by comparing the index for the first month of the 12 month period with the index for the last month of the period, there shall be a 0.1¢ per gallon, or fractional part thereof, increase or decrease in the rate of tax. The rate of tax shall be determined by the Secretary of Revenue, who shall cause such rate to be published as a notice pursuant to 45 Pa. C.S.§ 725(a)(3) (relating to additional contents of Pennsylvania Bulletin) in the Pennsylvania Bulletin on or before December 15 of each year. The tax, as adjusted, shall never exceed 2¢ per gallon, or fractional part thereof, nor shall it be less than 1.5¢ per gallon, or fractional part thereof.
(c) Construction of section.—This section shall be construed in conjunction with the act of May 21, 1931 (P.L.149,No.105), known as the Liquid Fuels Tax Act, as if jet fuels were liquid fuels as defined in that act, and all of the provisions of that act, except for section 4 thereof to the extent it imposes any tax, shall apply to the collection, administration and enforcement of the tax imposed under this section. Upon the effective date of the tax imposed by this section upon jet fuels, such jet fuels shall not be subject to the tax imposed by the act of January 14, 1952 (1951 P.L.1965). known as the Fuel Use Tax Act, except that dealer-users shall remain liable to report and pay the fuel use tax on any jet fuels used thereafter upon which the tax provided by this section has not been imposed.
(d) Disposition of taxes.—All moneys collected under this section shall be deposited by the State Treasurer in the Aviation Restricted Account.
AVIATION DEVELOPMENT LOAN PROGRAM
6141. Terms of loans
6142. Denial of loan application.
6143. Enforcement of loan agreement.
|§ 6141. Terms of loans.|
(a) Application.—the owner or operator of a public airport may apply for a loan from the Aviation Development Account. Applications for the loans shall be made in such manner and on such forms as are prescribed by the department.
(b) Limits on loans.—The department may, prior to approving any loan, appropriate from the Aviation Development Account an amount equal to the cost of administering the cost of the aviation development loan program. The department, following its review of each loan application, may approve any loan sought solely for aviation development at an airport located in this Commonwealth. No loan shall be approved for more than 10% of the total moneys contained in the Aviation Development Account at the time when the loan is applied for, or $100,000, whichever is greater.
(c) Interest and repayment period.—all loans approved by the department under this section shall bear interest at a rate substantially equal to the department’s cost of administering the airport development program, including debt service, and shall be repaid within a period not to exceed ten years.
(d) Notice to treasurer.—The department, following its review of each loan application, shall notify the treasurer of each applicant who qualifies for a loan and the amount of the loan for which the applicant is eligible. Within 30 days of receiving this notice, the treasurer shall issue to the qualifying applicant the full amount of the loan.
|§ 6142. Denial of loan application.|
Any applicant deemed not eligible for a loan shall receive written notice that the loan has been denied and the reason for denial.
|§ 6143. Enforcement of loan agreement.|
(a) Posting of security.—The department may, prior to its approval of any loan application, require that the applicant post with the department such security as will assure compliance with the terms of the loan. The amount that shall be posted shall not exceed 25% of the loan application. After a period of demonstrated compliance with the loan agreement, the department may reduce the amount posted or may eliminate the posting entirely. In the event of a default, the security shall be utilized for the retirement of the bonds provided for in Subchapter E(relating to bond issuance).
(b) Lien.—Upon entering into an agreement with a loan applicant, the department may enter a lien against the property of the applicant. The lien shall attach to all property and rights to the property immediately upon acquisition of any interest therein by any other corporation, association or person, whether the interest be legal, equitable or subject to a security interest as defined by Title 13 (relating to commercial code), including any interest that may be created therein pursuant to a trust, lien or other device by a creditor of the corporation, association or person to secure repayment of any obligation of the corporation, association or person.
(c) Recording and priority.—The department shall record the lien provided for under this section with the office of the prothonotary of the county wherein the airport is located and the lien shall be given a priority exceeded only by claims of the Federal Government, insofar as the laws of the United States may give a prior claim to the Federal Government.
(d) Release and appeal.—The department shall release the lien upon a showing by the applicant that he has not violated the loan agreement. The applicant may appeal a determination by the department that he has violated the agreement to the Board of Finance and Revenue. The appeal shall be made in accordance with Title 2 (relating to administrative law and procedure), including appeal to the courts.
6161. Authority to borrow.
6163. Sale of bonds
6164. Refunding bonds
6165. Disposition and use of proceeds.
6166. Registration of bonds
6167. Information to General Assembly.
6168. Redemption of bonds.
6169. Expenses of preparation, issue and sale of bonds.
|§ 6161. Authority to borrow|
The Governor, Auditor General and State Treasurer are hereby authorized to borrow, by the issuance of limited obligations of the Commonwealth, money not exceeding $25,000,000 for aviation development throughout this Commonwealth.
|§ 6162. Bonds|
(a) Issuance.—As evidence of the indebtedness authorized, limited obligation bonds of the Commonwealth payable solely from the Aviation Development Account may be issued from time to time for such terms and conditions of issue, redemption and maturity, rate or rates of interest and time of payment of interest, as the Governor, Auditor General and State Treasurer shall direct, except that the latest stated maturity date shall not exceed ten years from the date of the bond first issued for each series.
(b) Signatures.—All bonds issued under this chapter shall bear facsimile signatures of the Governor, Auditor General and State Treasurer and a facsimile of the Great Seal of the Commonwealth of Pennsylvania, and shall be countersigned by one authorized officer of the authorized loan and transfer agent of the Commonwealth.
(c) Limited obligation of Commonwealth.—All bonds issued under this subchapter shall not be deemed to pledge the full faith and credit of the Commonwealth but shall be limited obligations of the Commonwealth, payable solely from the Aviation Development Account, which is hereby pledged to the extent necessary for the payment of the interest thereon as it becomes due and the payment of the principal thereof at maturity. All bonds issued under this subchapter shall be exempt from taxation for State and local purposes. The principal of and the interest on the bonds shall be payable in lawful money of the United States of America.
(d) Type of bonds.—The bonds may be issued in certificate or book entry form as the issuing officials may determine.
(e) Amortization and retirement.—the issuing officials shall provide for the amortization of the bonds in substantial and regular amounts over the term of the debt. The first retirement of principal shall be stated to mature prior to the expiration of a period of time equal to one-tenth of the time from the date of the first obligation issued to evidence the debt to the date of the expiration of the term of the debt. Retirements of principal shall be regular and substantial fi made in annual or semiannual amounts whether by stated serial maturities or by mandatory sinking fund retirements computed in accordance with either a level annual debt service plan, as nearly as may be, or upon the equal annual maturities plan.
(f) Printing.—the Governor, Auditor General and State Treasurer shall proceed to have the necessary bonds prepared and printed. The bonds, as soon as they are prepared and printed shall be forthwith deposited with the duly authorized loan and transfer agent of the Commonwealth, there to remain until sold in accordance with the provisions of this subchapter.
|§ 6163 Sale of bonds.|
(a) Public sale.—Whenever bonds are issued, they shall be offered for sale at not less than 98% of the principal amount and accrued interest and shall be sold by the Governor, Auditor General and State Treasurer to the highest and best bidder or bidders after due public advertisement, on such terms and conditions and upon such open competitive bidding as the Governor, Auditor General and State Treasurer shall direct. The manner and character of the advertisement and the times of advertising shall be prescribed by the Governor, Auditor General and State Treasurer.
(b) Private sale.—Any portion of any bond issue so offered and not sold or subscribed for may be disposed of by private sale by the Governor, Auditor General and State Treasurer in such manner and at such prices, not less than 98% of the principal amount and accrued interest, as the Governor shall direct. No commission shall be allowed or paid for the sale of any bonds issued under the authority of this subchapter.
(c) Series.—When bonds are issued from time to time, the bonds of each issue shall constitute a separate series to be designated by the issuing officials or may be combined for sale as one series with general obligation bonds of the Commonwealth.
|§ 6164. Refunding bonds.|
The Governor, Auditor General and State Treasurer are authorized to provide, by resolution, for the issuance of refunding bonds for the purpose of refunding any bonds issued under the provisions of this subchapter and then outstanding, either by voluntary exchange with the holders of the outstanding bonds, or to provide funds to redeem and retire the outstanding bonds with accrued interest and any premium payable thereon, at maturity or at any call date. The issuance of the refunding bonds, the maturities and other details thereof, the rights of the holders thereof and the duties of the Governor, Auditor General and State Treasurer in respect to them shall be governed by the provisions of this subchapter, insofar a they may be applicable. Refunding bonds may be issued by the Governor, Auditor General and State Treasurer to refund bonds originally issued or to refund bonds previously issued for refunding purposes.
|§ 6165. Disposition and use of proceeds.|
(a) Aviation Development Account.—The proceeds realized from the sale of bonds under the provisions of this subchapter and all payments of interest on loans made and repayments of principal on such loans shall be paid into the Aviation Development Account which is hereby established and which shall be used for aviation development loans in this Commonwealth.
(b) Development loans and repayments.—Each owner or operator of a public airport may apply for a development loan from the Aviation Development Account. Applications for the loans shall be made in such manner and on such forms as are prescribed by the department. Development loans made under the provisions of this subchapter shall not exceed a period of ten years. Proceeds from repayment of the loans, including principal and interest thereon, shall be credited to the Aviation Development Account.
(c) Interest.—Pending their application to the purposes authorized, moneys held or deposited by the State Treasurer may be invested or reinvested as other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of the funds shall be paid into the State Treasury to the credit of the Aviation Development Account.
|§ 6166. Registration of bonds.|
The Auditor General shall prepare the necessary registry book to be kept in the office of the duly authorized loan and transfer agent of the Commonwealth for the registration of any bonds, at the request of owners thereof, according to the terms and conditions of issue directly by the Governor, Auditor General and State Treasurer. All bonds which are issued shall be registered in the registry books kept by the duly authorized loan and transfer agent of the Commonwealth.
|§ 6167. Information to general Assembly.|
It is the duty of the Governor to include, in every budget submitted to the General Assembly, full information relating to the issuance of bonds by the Commonwealth for the payment of the interest on the bonds and the principal thereof at maturity.
|§ 6168. Redemption of bonds.|
All bonds issued under the authority of this subchapter shall be redeemed at maturity and all interest due from time to time shall be paid from the Aviation Development Account.
|§ 6169. Expenses of preparation, issue and sale of bonds.|
There is hereby appropriated to the State Treasurer, from the proceeds for the bonds issued, as much money as may be necessary for all costs and expenses in connection with the issue of sale and registration of the bonds in connection with this subchapter.
|Section 2. Repeals.|
(a) Specific repeals.—The following acts or parts of acts are repealed:
Section 526 and 1208 of the act of April 9, 1929 (P.L.177,No175), known as The Administrative Code of 1929.
Act of April 25, 1929 (P.L>755,No.319), entitled “An act to cede jurisdiction to the United States over the tracts of lands and buildings occupied by the Army Air Depot and Flying Field located in and adjacent to the Borough of Middletown, Dauphin County.”
Act of May 8, 1929 (P.L.1683, No.540), entitled “An act making an appropriation out of the Motor License Fund to the Department of Property and Supplies.”
Act of May 25, 1933 (P.L.1001, No224), known as The Aeronautical Code.
Act of May 25, 1933 (P.L. 1016, No.226), entitled “An act relating to aeronautics; providing for the maintenance and operation of intermediate landing fields and air navigation facilities by the Commonwealth alone or in cooperation with the United States Government or political subdivisions of the Commonwealth; providing for the execution of leases or the issuance of licenses to the United States Government or to political subdivisions of the Commonwealth for the maintenance of navigation facilities on intermediate landing fields of the Commonwealth; conferring powers and duties on the Department of Revenue with respect thereto; and repealing certain acts and parts of acts.”
Act of May 25, 1933 (P.L.1017,No.227), entitled “An act making an appropriation out of the Motor License Fund to the Department of Property and Supplies to assist in the development of aeronautics.”
Act of June 21, 1937 (P.L. 1967, No.387), entitled “An act requiring all terminal airports maintaining regular schedules flights, and all radio transmission stations used for air navigation purposes, to maintain auxiliary aerial night lighting equipment, and an auxiliary source of electric current for the same; and providing penalties.”
Act of May 21, 1943 (P.L.328,No.152), entitled “An act authorizing the Secretary of Highways, at the request of, and under agreement with the Public Roads Administration of the United States, to lay out, establish, construct and maintain flight strips and roads to the sites of war activities, or to replace roads or streets which have been closed by defense or military activities, and to condemn property for such purposes, authorizing a width of two hundred feet for such roads in certain cases; and making an appropriation.”
Act of April 17, 1945 (P.L.237, No.107), known as the Airport Zoning Act.
Act of July 27, 1953 (P.L. No.186), entitled “An act prohibiting the erection and maintenance of obstructions to the operation of aircraft in certain areas and prescribing penalties.
Act of May 29, 1956 (1955 P.L. 1787,No.596), entitled “An act authorizing the Department of Military Affairs to expend State funds for civil air patrol aviation, education, training aids and maintenance of civil air patrol aircraft, and making an appropriation.”
Act of August 31, 1967 (P.L.287, No.119), entitled, as amended, “An act providing for the administration of property and facilities located in Dauphin County, now known as Olmsted Air Force Base, to be acquired by the Commonwealth from the United States of America; establishing an airport; conferring powers and imposing duties upon the Department of Transportation.”
(b) General repeals.—All other acts and parts of acts are repealed insofar as they are inconsistent with this act.
Section 3. Existing programs.
Nothing in this act shall be construed to affect or repeal any appropriation made for the current fiscal year for existing aviation programs, and the appropriations made for these programs shall continue at current levels for the remainder of the 1983-1984 fiscal year.
Section 4. Effective date.
This act shall take effect immediately. However, in the event this act is not finally enacted on or before July 1, 1984, the taxes imposed under sections 6121 (relating to tax on aviation fuels) and 6131 (relating to tax on jet fuels) shall not be effective as of July 1, 1984, but shall be effective on the first day of the first month following final enactment.
|APPROVED—The 10th day of October, A.D. 1984. |