Finance, Taxes, Insurance
Revamped Arizona tax law benefits state aviation fund
Business aviation operations in Arizona stand to benefit from new legislation that returns certain aviation tax revenues to the state’s airport improvement

Business aviation operations in Arizona stand to benefit from new legislation that returns certain aviation tax revenues to the state’s airport improvement programs. Arizona governor Jane Dee Hull signed SB1251 into law on May 2, authorizing the deposit of 100 percent of flight property tax revenues into the state aviation fund starting in fiscal year 2004.

This action effectively repeals a 1997 law that diverted 50 percent of the flight property tax collected to the state’s general fund. According to Gary Adams of the Arizona Department of Transportation (ADOT), the flight property taxes paid to the state in fiscal year 1999 to 2000 totaled $13.4 million, with $6.7 million each deposited in the state general fund and the state aviation fund. The tax revenues will continue to be split between the two funds until July 1, 2003.

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