In my summary of Senate Bill 1, the big road-fixing, fuel-taxing bill, I mentioned that the bill exempts aviation fuel from a new 3% wholesale tax. Incurable snark that I am (maybe SAB Biotherapeutics can engineer a shot for that), I mentioned Mike Rounds and linked the fact that he's a frequent user of aviation fuel.
But a report on NPR this morning chides me for even thinking that our Legislature would shape policy around a favor for our former Governor and now Senator. It turns out the Federal Aviation Administration has clarified a fuel tax rule, declaring that states and municipalities can spend aviation fuel taxes only on airport and aviation-related projects. Since Senate Bill 1's intent is to "finance improvements on the public highways and bridges," an increase in aviation fuel taxes, which can only be used to finance improvements in airports and runways, would be non-germane... and the South Dakota Legislature sure as heck isn't going to have any non-germaneness in its bills (right, LRC?).
The question now: will this rule clarification affect the money available for South Dakota road and bridge projects?
You could conceivabably use AFT to fix up highways because Rounds could use one as a runway in an emergency,such as no parking near a bar or something. Works for me.
My memory fails me but wasn't this money raided a few years back to be used for some other purpose? Maybe a legislator can clarify.
Nick is right. The state did raid the aeronautics fund of several millions a few years back. There have been bills introduced a couple of times in the SD legislature to put it back, but they failed. Maybe now the FAA will make them put it back. No one likes taxes; but they should at least be used for the purpose for which they were collected. If I understand SB1 (the highway bill) correctly, dyed (off road) fuels will also be taxed for road and bridge repairs. Why should construction and ag be taxed to fix roads they don't use (with the exception of a few township roads to get to the field)?
Thanks Alan. Taxing dyed fuel to repair roads is simply grasping at straws. In my operation I might spend a few minutes driving a tractor or combine to a field and several, or many days in that field planting or harvesting. Will they be willing to reimburse me the tax I pay on clear fuel for the miles I drive my trucks in the field or on unimproved section lines?
Has mike indicated if he will be flying himself back and forth to d.c.? Thune could kick in on the fuel, and kristi could be the waitress.
Not sure how much South Dakota common sense that would display.
Governors Rounds and Daugaard both raided the Aero Fund for millions to save Mike's legacy in Lead. Gov. DD put a bit back in. You could rightfully say pilot Mike is one of a few Gov's who forced the Fed's hand on restraining the frivolous use of aviation fuel taxes. Shantel told me at the time, Rounds justified it with her by saying it was ARRA funds. For every million they raided from our SD AERO fund, it cost us roughly 9 million in lost federal funding on our airport maintainance and construction.
Let the fat cat airlines pay to build their own aeroports.
Achshully, Grud, it's the airlines payment of taxes in SD that mostly fund all of our small airports as well as the handful they fly into.
That is interesting, Mr. Les. I wonder if maybe we stopped making them pay those taxes perhaps the insaner than all get out ticket prices might go down. We only need 3 airports in this state. Everybody else can land their Pipers on a grass strip and mow it themselves, like we used to do in the old days.
Sioux Falls, Rapid City and Elk Point.
I kinda thought maybe, Winner, Pierre and Buffalo. It's the pheasants in Winner, the gas in Pierre and the oil in Harding Co. Tickets are cheap, beer is good and my God is great, Grudz.
Les, it is hard to argue with a man having your beliefs. But Bison has a better landing strip and more than one breakfast joint, plus everybody know Perkins Co. has better fishing.
Can't argue that fishin Grudz. Best kept secret in SD. It's out now.
"Kristi, John and I are gonna discuss policy. Would you be a lamb and get us each a bag of peanuts and a Bubble Up...?"