AOPA, On Washington State GA Taxes

Last week, we ran a couple articles on Washington's crusade to get pilots, mechanics, and other FAA certificate-holders to get on the state's list, and pay the special taxes that were designed, just for them.

We interviewed the state DoT's Theresa Smith, who told us that there had been some clamor from "pilots' groups," asking for the taxes, so the state could maintain its long-neglected runways. They're raising the tax on av-gas, too, by 33%. The the tax exemptions (there's always exemptions -- it's the nature of politicians) don't go to small GA, with the final effect's being (her words), 95% of the [aviation] people don't pay the tax. [Perhaps she misinterpreted the AOPA's outline for taxation and offer to help structure a tax bill (in the February letter) as an endorsement of additional taxation.]

In March, AOPA strongly opposed the state's plan to make non-compliance a near-criminal offense.

Last week, we said we'd have a more-formal statement from AOPA on this issue, and, sure enough, they issued a press release the same day we published our article. At least twice earlier in the year, AOPA had made its concerns known to the Washington DoT. Excerpts are below, followed by the May 7 press release:

February 12, 2003
The Honorable Jim Horn, Chairman
Senate Highways and Transportation Committee

Dear Chairman Horn:

...We are aware the Senate Highways and Transportation Committee has under consideration Senate Bill 5392, a bill to increase fees for pilots and aircraft. (snip)

AOPA is disappointed that the general aviation community is the first target for any proposed fee increase. The general aviation community, more than any other aviation operation, will be the most adversely impacted by Senate Bill 5392. General aviation operators have paid fuel taxes for years as well as pilot and aircraft registration fees while other commercial operators have been exempt from many forms of tax. It is reported by the Washington Division of Aviation that over 95% of aviation users are exempt under state law from paying fees. We are upset that an increase in pilot and aircraft registration would be considered before an attempt is even made to collect fees from those operators presently exempt. Shouldn't all users of the state's aviation system be asked to pay before a group is singled out to pay more?

(snip) AOPA strongly believes that money paid by aviation users should be used to fund the aviation system. Rather than requiring aircraft owners to pay more, AOPA suggests the ratio of the excise taxes deposited to the general fund be adjusted to deposit the additional money into a fund for airport maintenance. The legislature could consider a phased-in approach to adjusting the ratio at which the excise tax is deposited in order to ease the impact to the general fund.

AOPA would prefer the legislature set the pilot and aircraft registration fees at a fixed amount.  Senate Bill 5392 as written provides that the department of aviation could charge $15 - $30. If that language remains, the department would not need legislative approval before raising the pilot or aircraft registration fee.  A fee increase could be implemented with no public comment. AOPA recommends that the legislature fix the fee at a set amount.

Currently Washington is one of only eight states that charge pilot registration fees. Those states and their respective fees are: (snip)

Overall, AOPA feels the legislature should first consider other measures to provide the revenue necessary to support the statewide airport system, rather than to increase fuel tax and other fees paid by general aviation pilots. AOPA feels that not enough consideration has been given to other necessary means or measures to increase revenue. If the legislature is unable to reach agreement on an amended version of Senate Bill 5392, then the legislature should consider forming a committee made up of aviation professionals, pilot organizations, businesses, and division of aviation staff in order to prepare an in-depth analysis of various aviation funding mechanisms. AOPA would gladly offer our nationwide aviation experience to any such committee. (snip) 

Andrew V. Cebula, Senior Vice President, Government and Technical Affairs, AOPA
------
March 4, 2003
The Honorable Jim Horn, Chairman
Senate Highways and Transportation Committee

Dear Chairman Horn:

...AOPA would like to express serious concern the Association and our membership have with Senate Bill 5961.  The bill, relating to aircraft registration, amends RCW 47.68.240 prescribing penalties for failing to register.

Specifically, the bill states "for violations of RCW 47.68.220 and 47.68.230, the court in its discretion may prohibit the violator from operating an aircraft within the state for such period as it may determine but not to exceed one year."

The state does not have the authority to prohibit a pilot, whose license is issued by the Department of Transportation - Federal Aviation Administration (FAA), from exercising the privileges of that license. The FAA has the sole authority to enforce federal aviation regulations that can include suspending or revoking an airman's certificate. This policing power does not extend to the state. (snip)

Sincerely, Keith Holt, Manager, Airport Policy, AOPA

Press Release, May 7, 2003:

AOPA weighed in on the Wash. State tax debate

FREDERICK, MD (AOPA News Service) - Washington State's Aviation Division is caught in a budget crunch, but when it tried to balance its books on the backs of GA pilots, AOPA cried foul.

Instead of a 20% surcharge on top of the excise tax they already pay, and the risk of losing their flying privileges for up to a year if they failed to register themselves or their aircraft, Washington State pilots will pay the same in excise taxes and face only civil fines, thanks in part to AOPA comments during debate on the bills.

AOPA has been well aware of the infrastructure problems plaguing Washington's Division of Aviation, caused in part by sweeping tax exemptions given to virtually every segment of the aviation industry except general aviation.

In February, when the state's Department of Transportation sought to raise needed funds with sweeping tax increases, AOPA objected strongly (see letter) and suggested alternative funding solutions.

At the same time, the legislature was considering a bill to tighten enforcement of the state's pilot and aircraft registration rules by threatening criminal charges and revocation of a pilot's right to operate for up to a year for failing to register. AOPA responded to that threat as well, stating in a letter [see letter] that only the federal government could restrict a pilot's access to the national airspace system.

In part as a result of AOPA's intervention, the 20% excise tax surcharge was dropped from the final version that was recently signed into law, and the penalty for failing to register is now a civil fine.

[We hope we have cleared up any misunderstanding --ed.]

FMI: www.aopa.org