(a) Notwithstanding other provisions of this chapter, tax imposed with respect to the sale, the use, the consumption, the distribution, and the storage of aviation fuel that is actually used in the operation of airplane or aircraft motors, shall be at the rate of four and one-quarter percent (4.25%).
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Terms Used In Tennessee Code 67-6-217

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Commissioner: means and includes the commissioner of revenue or the commissioner's duly authorized assistants. See Tennessee Code 67-6-102
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Person: includes any individual, firm, co-partnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, any governmental agency whose services are essentially a private commercial concern, or other group or combination acting as a unit, in the plural as well as the singular number. See Tennessee Code 67-6-102
  • Property: includes both personal and real property. See Tennessee Code 1-3-105
  • Sale: includes the furnishing of any of the things or services taxable under this chapter. See Tennessee Code 67-6-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Storage: means and includes any keeping or retention in this state of tangible personal property for use or consumption in this state, or for any purpose other than sale at retail in the regular course of business. See Tennessee Code 67-6-102
  • Use: means and includes the exercise of any right or power over tangible personal property incident to the ownership thereof, except that it does not include the sale at retail of that property in the regular course of business. See Tennessee Code 67-6-102
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105
(b)

(1) For purposes of this section:

(A) “Air carrier” means any person, firm, corporation, or entity providing air transportation of passengers or property;
(B) “Tax year” means a period beginning on July 1 and ending on the following June 30; and
(C) “Transportation hub” means a location in this state from which there originates fifty (50) or more flight departures five (5) days per week for six (6) or more months during the calendar year and where passengers or property are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier.
(2) The tax imposed and remitted on a person’s purchase, use, consumption, or storage of aviation fuel, pursuant to subsection (a), that is used in the operation of commercial aircraft of a certificated or licensed air carrier with a transportation hub within this state, must not exceed the following:

(A) Eight million five hundred thousand dollars ($8,500,000) for the period of July 1, 2021, through June 30, 2022;
(B) Five million dollars ($5,000,000) for the period of July 1, 2022, through June 30, 2023;
(C) Three million dollars ($3,000,000) for the period of July 1, 2023, through June 30, 2024; and
(D) One million dollars ($1,000,000) for a tax year occurring on or after July 1, 2024.
(3) The commissioner shall establish a process for applying the cap provided by subdivision (b)(2).
(c) The transportation equity trust fund must be reimbursed for decreased aviation fuel tax revenue resulting from any public act passed by the general assembly after January 1, 2021, in an amount equal to the estimated decrease in tax revenue as reflected in the fiscal note prepared for such legislation by the fiscal review committee in accordance with § 3-2-107. Any reimbursement to the transportation equity trust fund in accordance with this subsection (c) must be made from the general fund, subject to appropriation by the general assembly in the annual general appropriations act.
(d) On or before December 31 each year, the department of finance and administration shall report in writing to the chairs of the finance, ways and means committees of the senate and the house of representatives, the chair of the transportation committee of the house of representatives, and the chair of the transportation and safety committee of the senate, the total amount of tax revenues collected pursuant to this section for the preceding fiscal year.
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