2018 -- S 2377

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LC004613

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO AERONAUTICS - AIRPORTS AND LANDING FIELDS

     

     Introduced By: Senators McCaffrey, and Lynch Prata

     Date Introduced: February 15, 2018

     Referred To: Senate Finance

     (RI Airport Corporation)

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 1-2 of the General Laws entitled "Airports and Landing Fields" is

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hereby amended by adding thereto the following section:

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     1-2-22. Rhode Island airport and aviation fund.

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     (a) There is hereby established the Rhode Island airport and aviation fund to be managed

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and administered by the Rhode Island airport corporation.

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     (b) The Rhode Island airport and aviation fund shall be funded by an aviation jet fuel

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excise tax.

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     (1) An excise tax of seven percent (7%) on the gross sales of aviation jet fuel sold and

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used in the propulsion of aircraft is hereby imposed.

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     (i) "Aviation jet fuel" means kerosene that meets all of the following requirements:

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     (A) Has a maximum distillation temperature of four hundred degrees Fahrenheit (400°F)

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at the ten percent (10%) recovery point and a final maximum boiling point of five hundred

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seventy two degrees Fahrenheit (572°F); and

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     (B) Meets American Society Testing materials Specification D 1655 and Military

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Specifications MIL-T-5624P and MIL-T-83133D, Grades JP-5 and JP-8.

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     (2) The excise tax shall be borne by the purchaser, and no distributor offering aviation jet

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fuel for sale shall sell, advertise, or offer for sale said fuel separately from the tax imposed by this

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chapter.

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     (3) The excise tax on aviation jet fuel shall be collected by the distributor of the aviation

 

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jet fuel and paid directly to the Rhode Island airport and aviation fund on a quarterly basis.

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     (4) The sale of aviation jet fuel is exempt from the aviation jet fuel excise tax if the

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aviation jet fuel is for use by the United States Armed Forces.

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     (c) The Rhode Island airport and aviation fund may be used for capital or operating costs

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as set forth in 49 U.S.C. § 47107(b).

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     SECTION 2. This act shall take effect on January 1, 2019.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO AERONAUTICS - AIRPORTS AND LANDING FIELDS

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     This act would establish the Rhode Island airport and aviation fund to be managed by the

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Rhode Island airport corporation and funded by an aviation jet fuel excise tax in the amount of

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seven percent (7%) of the gross sales of aviation jet fuel sold and used in the propulsion of

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aircraft.

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     This act would take effect on January 1, 2019.

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