Dedicated Aviation Sales Tax Revenue for Airport Development


Seek legislation that provides for the dedication of aviation sales and franchise taxes in support of airport development throughout the State of Texas. Both general aviation and commercial service airports would be eligible to receive state funding.


Increased state funding would contribute greatly to airport safety, security, maintenance and development and make Texas airports more competitive for federal grants. Increased investment in airport development would serve to enhance the ability and capacity of Texas airports to serve as catalyst for local, regional and state wide economic development.


Reference: City of Laredo Resolution No. 2008-R-028 approved by Mayor and City Council on April 21, 2008 and on July 14, 2008 the Webb County Commissioners Court approved a resolution supporting the City's resolution.


The State of Texas is among the very few states that does not have a dedicated source of funding for airport development. Currently the Texas Department of Transportation provides limited funding to its Division of Aviation in the amount of $16.0 million per year from the nonĀ­ dedicated portion of Fund Six for airport development. There are 300 plus general aviation airports in the current TxDoT airport funding program and due to limited funding, no state funds for capital improvement projects are available for commercial service airports.


The State of Texas annually collects approximately $80.0 million in sales and franchise taxes from aviation and air transportation related goods and services and deposits this revenue into the State General Fund. The state sales and franchise taxes on aviation and air transportation goods and services would provide a dedicated funding source for the states' airports and would provide a close link between the tax and how that money is spent.


The State of Texas has set precedence when  it approved the dedication of sales tax revenue collected from sporting goods to be dedicated to the state's park system.


Mario Maldonado
Acting Airport Manager
5210 Bob Bullock Loop Laredo, Texas 78041
Phone: (956) 795-2000
Fax: (956) 795-2572