HB602 Summary

• Amends Section 40-17-329 of the Alabama Code to establish the State Aviation Trust Fund administered by the Alabama Department of Transportation to collect taxes on aviation gasoline and jet fuel sales.

• Requires 50 percent of aviation fuel tax revenues to be distributed to Air Carrier Airports (public airports with scheduled commercial service and over 10,000 annual passengers) based on each airport's pro rata share of tax revenue collected.

• Allocates the remaining 50 percent of aviation fuel tax revenues on a discretionary basis to both Air Carrier and non-Air Carrier Airports through a priority system emphasizing federal matching funds for eligible projects and economic development initiatives that create jobs.

• Maintains existing tax refund provisions for exporters, exempt agencies, aviation fuel purchasers, end users, and air carriers with hub operations, allowing quarterly or monthly refund applications to the department.

• Becomes effective on the first day of the third month following passage and approval by the Governor.