The bill amends the Aeronautics Code of the State of Michigan, specifically sections 34 and 203, to establish and modify the funding structure for the state aeronautics fund and the qualified airport fund. It creates the qualified airport fund, which will receive a portion of the aviation fuel taxes collected, specifically the amount deposited under section 203(2). The bill also specifies that the state aeronautics fund will receive funds from various sources, including aviation fuel taxes, sales and use taxes, and licensing fees related to aviation activities.

Additionally, the bill increases the privilege tax on aviation fuel from 3 cents to 10 cents per gallon and outlines the distribution of the tax revenue, with 35% allocated to the state aeronautics fund and 65% to the qualified airport fund. It also includes provisions for tax refunds to airline operators and clarifies that the tax does not apply to aviation fuel purchased for specific purposes, such as formulating leaded racing fuel. The enactment of this bill is contingent upon the passage of several other related bills in the legislature.

Statutes affected:
Substitute (H-1): 259.34, 259.203
House Introduced Bill: 259.34, 259.203
As Passed by the House: 259.34, 259.203