This bill proposes the elimination of certain tax exemptions on aviation fuel used by airlines, specifically removing the exemption for common carriers on the entire receipts from the sale of aviation fuels, except for specific circumstances. The bill amends existing legal definitions and clarifies that the "burnout" portion of aviation fuel used by common carriers will now be taxable. Additionally, it introduces new definitions for "qualifying airline" and "regional air carrier," which specify the criteria for airlines subject to this tax.

Furthermore, the bill allocates the revenues generated from this tax to support the extension of the Port Authority Trans-Hudson Corporation (PATH) rail service to Newark Liberty International Airport and other airport improvement projects. It establishes that starting from the fiscal year beginning July 1, 2026, the revenues derived from the aviation fuel tax will be appropriated to the Port Authority for capital and operating costs, and once the rail service extension is fully funded, these revenues will be redirected to the Airport Safety Fund or the New Jersey Department of Transportation's Airport Improvement Program for grants related to airport improvements. The act is set to take effect 90 days after its enactment.

Statutes affected:
Introduced: 54:15B-2, 54:15B-2.1, 27:1B-21.8