Legislature Approves Increased Investment for Michigan Aviation Infrastructure

During the last week of session, the Michigan Legislature approved aviation fuel changes which would dedicate 2 percent of the sales tax on aviation fuel to aviation purposes and split those funds, as well as the current 3 cents per gallon tax, between the Aeronautics Fund, overseen by the Aeronautics Commission, and the Qualified Airport Fund, which provides for capital projects at certain airports.  The operators of a qualified airport would be required to use the funds for the purposes related to capital improvements to landing areas, on which many MITA members perform work.

The bills passed have been something that MITA has supported and worked on for many years and are estimated to bring in additional revenue to improve several airports in Michigan between $11.9 million and $19.7 million annually based on current prices for jet fuel and aviation gasoline.  As prices increase for those commodities, more money would be generated for such activity.

If you have any questions or concerns, please contact Mike Nystrom, Executive Vice President, at mikenystrom@mi-ita.com or Lance Binoniemi, Vice President of Government Affairs, at lancebinoniemi@mi-ita.com.  They can also be reached at the MITA office by calling 517-347-8336.