This bill proposes the elimination of certain tax exemptions on aviation fuel used by airlines, specifically targeting the entire receipts from the sale of aviation fuels utilized by qualifying airlines, which are defined as those with more than eight million enplaned passengers per year in New Jersey. The bill amends existing legal definitions and stipulations regarding aviation fuel and its taxation, including the inclusion of the "burnout" portion of fuel used by common carriers. It also introduces new definitions for "qualifying airline" and "regional air carrier," ensuring clarity in the application of the tax.

Additionally, the bill allocates funds derived from the taxation of aviation fuel to support the extension of the Port Authority Trans-Hudson Corporation (PATH) rail service to Newark Liberty International Airport, as well as other airport improvement projects. It establishes that starting from the fiscal year beginning July 1, 2026, the revenues from this tax will be appropriated to the Port Authority for operational costs related to the rail service extension. Once the costs are fully covered, the funds will be redirected to the Airport Safety Fund or the New Jersey Department of Transportation's Airport Improvement Program for further airport enhancements. 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