HB602 Alabama 2012 Session

Summary

Primary Sponsor

Mac McCutcheon

Republican

Session

Regular Session 2012

Title

Taxation, creation of Aviation Trust Fund, distribution of proceeds, Act 2011-565, 2011 Reg. Sess. am'd; Sec. 40-17-329 am'd

Summary

HB602 would create the State Aviation Trust Fund funded by the aviation gasoline and jet fuel tax and set how the money is distributed to Alabama airports and aviation-related projects.

What This Bill Does

It requires the Alabama Department of Transportation to establish the State Aviation Trust Fund and deposit all tax revenues from aviation gasoline and jet fuel into it. Fifty percent of the fund would go to Air Carrier Airports based on each airport's share of the tax revenue from fuels sold there. The remaining fifty percent would be available as discretionary grants to both Air Carrier and non-Air Carrier Airports, allocated through a priority system that favors non-Air Carrier projects with federal matching funds and projects promoting economic development. The bill also rewrites several tax exemption and refund provisions, creating new refund opportunities for exporters, exempt entities, end users, and certain jet-fuel purchases, and outlines how refunds can be requested.

Who It Affects

• Air Carrier Airports in Alabama, which would receive an entitlement share of 50% of the tax revenues based on their fuel sales
• Non-Air Carrier Airports and air carriers, which could receive discretionary grants under the priority-based funding system
• Alabama Department of Transportation, which would administer the State Aviation Trust Fund and the grant program
• Jet fuel purchasers, aviation fuel suppliers, exporters, and end users, who may be eligible for various refunds or exemptions under the amended provisions
• Exempt entities (e.g., U.S. government, counties, municipalities, boards of education, and certain state institutions) and other described entities, which may apply for quarterly refunds on motor fuel purchases

Key Provisions

• Establishment of the State Aviation Trust Fund into which all aviation fuel tax revenues (aviation gasoline and jet fuel) are deposited
• 50% of fund revenues distributed to Air Carrier Airports based on each airport's pro rata share of tax revenue from the fuel sold at that airport
• 50% of fund revenues distributed on a discretionary basis to Air Carrier and non-Air Carrier Airports using a priority funding system
• Priority system giving weight to: (a) state matching funds for non-Air Carrier projects eligible for federal funding with local match, and (b) economic development projects that create jobs and capital investment in the state
• Refund and exemption provisions amended to allow refunds for exporters, end users, exempt agencies, and other specified categories, with monthly or quarterly refund processes and defined qualifications
• Specific provisions related to jet fuel exemptions and refunds for certain international and all-cargo operations and related definitions

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation