Bill addresses infrastructure needs at Pennsylvania airports

A 40-year-old statutory limitation has prevented adjustments to Pennsylvania’s aviation fuel tax rates. As the cost of maintaining transportation infrastructure increases while engine technology becomes more fuel-efficient, the combination of record inflation and declining fuel sales has forced state officials to contemplate full transportation funding reforms.

The Pennsylvania Aviation Investment and Reform (AIR) Act seeks to fix a growing funding gap in aviation by increasing aviation gasoline tax from 6 cents per gallon to 24 cents per gallon. Additionally, the state would implement an aircraft registration fee of $25 per seat for noncommercial aircraft. For a typical four-seat GA aircraft, that’s $100 annually. In total, the state expects these two funding sources to generate about $2.5 million each year.

Those fees would be a small part of a much larger overhaul of how Pennsylvania funds GA airports to include creating a new Aviation Trust Fund dedicated to hangar development, aviation opportunity grants, and workforce development programs.

“We hear from AOPA members every week, all across the country, who are unable to find affordable hangar space. The cost to build new hangars can be excessively expensive, resulting in lease rates that too few pilots can reasonably afford. This has airport sponsors slow to respond to increasing hangar demand,“ said AOPA Eastern Regional Manager Sean Collins. “As pilots, none of us like having additional fees and taxes added to our operating costs, but there is a cost to maintaining our aviation system. The AIR Act seeks to eliminate some of the cost burden for airports such that it will lower costs to consumers.”

Pennsylvania’s airports have faced a large funding gap for many years—infrastructure is aging, hangars are scarce, and the state anticipates a more than $50 million systemwide funding gap. This bill goes a long way to meeting those needs while providing a 13-fold return on the GA users’ investment.

For the average GA aircraft owner flying a Cessna 172 for 100 hours per year and burning 10 gallons per hour (a higher rate than most aircraft burn), the total cost would be $100 per year in registration fees and $1.80 per flight hour in fuel taxes, or $180 per year in total additional fuel tax.

In return, the AIR Act would deliver:

• $6 million for light GA hangar development.
• $18 million in state grants for airports, including $6 million for privately owned public-use airports not included in the National Plan of Integrated Airport Systems.
• $2.5 million in state entitlement grants, guaranteeing at least $25,000 to every eligible airport.
• $6 million for aviation workforce development, including programs like AOPA’s high school initiative.

The bill would also redirect sales tax from aircraft purchases into the Aviation Trust Fund—those funds currently go into the state’s general fund and are used for non aeronautical programs.

“In this case and elsewhere, AOPA advocates for our members every step of the way—ensuring new fees or costs are reasonable, transparent, and justifiable,” said AOPA Vice President of Airports and State Advocacy Leon Jackler. “In this case, while we wish there was a way to not raise fees, getting $32.5 million in benefits from $2.5 million being raised through taxes and fees is a strong return.”

AOPA’s advocacy predates the AIR Act’s introduction.

In 2013, AOPA also helped secure a law exempting aircraft maintenance from sales tax.

Several years ago, the Pennsylvania Aviation Advisory Committee asked AOPA to study the state’s hangar shortage. It found that 64 percent of airports had waiting lists, that the average hangar is more than 30 years old, and that airports would need to increase the number of hangars by 38 percent to meet demand. Those findings shaped AOPA’s advocacy priorities and helped make the case for dedicated hangar funding.

As the AIR Act began to take shape, AOPA also advocated for GA pilots. Early proposals called for charging aircraft owners between $300 and $500 per aircraft annually. AOPA’s engagement drove that figure down to $25 per seat.

Separately, the Pennsylvania Department of Transportation has commissioned a statewide airport economic impact study. The survey does not collect personal information, but its results will help PennDOT explain the jobs, payroll, economic impact, and taxes that GA contributes to the state economy. AOPA encourages its members—whether they are based in Pennsylvania or visit the state—to take part.