Glenn Hamer, president and CEO of the Arizona Chamber of Commerce and Industry, recently penned a blog post supporting and amendment to H.B. 2064 that aims to make Arizona’s airports more competitive through tax code changes.
Currently, Arizona imposes a 0.0305 percent per gallon jet fuel tax on airlines for the first 10 million gallons of jet fuel consumed. The revenue raised from this tax then goes toward aviation expenses incurred by the state. Hamer believes that a further tax levied by Phoenix on operators using Sky Harbor International Airport, the state’s largest hub, has dampened Arizona’s airline industry.
The city imposes a 0.00732 percent per gallon jet fuel tax for all jet fuel consumption by airlines using the airport. The revenue generated from this tax is directed into the city’s general fund, meaning it is not necessarily used to serve the state’s aviation needs.
A proposed amendment to H.B. 2064 by Arizona Rep. Michelle Ugenti-Rita and Arizona Sen. Warren Petersen would unify state and city taxation of jet fuel so they would both be limited to the first 10 million gallons with revenue directed toward aviation-related spending.
Hamer said he supports this measure as a way to improve the state’s standing with the airline industry, as attracting new carriers and routes has a positive impact on the state’s competitiveness for business and leisure travel.