Aviation Fuel Tax History 1966: "An excise tax is hereby levied upon the use, distribution or sale within the Trust Territory of all gasoline and diesel 

### fuel at the rate of five cents per gallon so used, distributed or sold." 77 TIC§ 101(2). Does not distinguish between aviation and non-aviation fuel. March 24, 1976: Covenant goes into effect, replacing Trust Territory government with Commonwealth government: (a) The Government of the United States may le vy excise taxes on goods manufactured, sold or used or services render ed in the Northern Mariana Islands in the same manner and to the same extent as such taxes are applicable within Guam

. (b) The Government of the Northern Mariana Islands 

### will have the authority to impose excise taxes upon goods manufactured, sold or used or services rendered within its territory or upon goods imported into its territory, provided that such excise taxes imposed on goods imported into its territory will be consistent \vith the international obligations of the United States. Covenant, § 604. Trust Territory tax law remains in effect. Covenant, § 505. May 

### 27, 1982: "For the privilege of**f~.rst** selling, using or distributing aviation gas or other aviation fuel imported into the Commonwealth, there is hereb y imposed an excise tax at the rate of three percent (3%) ad valorem. The Director ofFinance may reduce or waive by regulation the aviation fuel tax upon an airline upon finding that the airline will increase its flight schedule into and \vithin the Commonwea lth to a level resulting in benefits to the Commonwea lth in excess of the loss ofrevenue under this section." PL 3-11 

### § 403(b). Tax goes to the general fund. December 30, 

### 1987: 49 U.S .C. § 47107(b) cut-off date. January 24, 1995: Tax amended: "For the privilege of fLrst selling or distributing aviation gas or other aviation fuel in the Commonw ealth, there is imposed an excise tax at the rate of three percent (3%) ad valorem." PL 9-22 

### § 1 (1403(b))

. "The Secretary may by regulation reduce or waive the fuel tax imposed under§ 1403 where

. .. the price ofaviation fuel without the aviation fuel tax would be morecompetitive than the price of aviation fuel elsewhere and the airline would purchase the a v iation fuel in the Commonwealth." PL 9-22 

### § 1(1404(a)). Febr uary 16, 1999: FAA issues Policies and Procedures Concerning the Use of Airport Revenues (Reven ue Use Policy ). 64 FR 7696

. 

### Jul y 23,2002: New section provides : After rS2,000,000 worth of non-aviation fuel taxes have] been transferred, and notwithstanding any law to the contrary, beginning October 1, 2001 and annually thereafter, the Department of Finance shall deposit the ba lance amount o f the liquid fuel tax collected under 4 CMC § 1403(a) and the entire amount 

## of the aviation tax coflet'led under4 CMC§ 

### 1403(b) into the Land Compen sation Fund. Such funds shall be continually appropriated to the Marianas Public Lands Authority for the sole purpose of paying the principal and interest on any financing authorized by this Act. Provided, that, in the event the amount in the Land Compensation Fund is insufficient to cover any requisite payment, the Governor is hereby authorized , notwithstanding any contrary law, to pay the remaining balance from the general fund

. The funds in the Land Compensation Fund sha ll be nonlapsing, except, upon certification by the Secretary of Fina n ce that all principal and interest on all financing has been paid in full and discharged, any funds remaining in the Land Compensation Fund shall lapse to the general fund.
PL 13

- 1 7 

### § 5. (emphasis added). Land Compensation Fund used to pay a bond. PL 13-17 

### §§ 3

-4. Se pt ember 20, 2002: After [$2,000,000 worth of non-aviation fuel taxes have] been transferred, and notwithstanding any law to the contrary, on or before October 1, 2002 with :MPLA securing the $40,000,000 mandated by PL 13

- 17, as amended, and annually thereafter, the Department of Fina n ce shall deposit the balance amount of the liquid fuel tax collected under 4 CMC § 1 403(a) and tbe entire amount 

## of the aviation tax c·ollec'led 11tlder4 CMC 

### § 1403(b) into the Land Compensation Fund. Such funds shall be continually appropriated to the Marianas Public Lands Authority f or the sole purpose ofpaying the principal and interest on any financing authorized b y PL 13-17, as amended. Provided,that, in the event the amount in the Land Compensation Fund is insufficient to cover any requisite payment, the Governor is hereby authorized, notwithstanding any contrary law, to pay the remaining balance from the general fund. The funds in the Land Compensation Fund shall be nonlapsing, except, upon certification by the Secretary of rinance that all principal and interest on all financing has been paid in full and discharged, any funds remaining in the Land Compensation Fund shall lapse to the genera l fund.
PL 13-25 

### § 1(2) (emphasis added). The only change is the date when the tax begins to be transferred. December 13, 2002: After [S2,000,000 worth of non-aviation fuel taxes have] been transferred, and notwithstanding any law to the contrary, and beginning when the Commonwealth initially obtains the interim or other financing authorized by this Act, the D epartment ofFinance shall deposit the balance of the amount of the liquid fuel tax collected under 4 CMC 

### § 1403(a) and the entire omoHnl of 

### the aviation tax collededunder4 ClvlC 

## f 1403(b) into the Land Compensation Fund to the extent necessary to maintain a balance in such rund at all times sufficient to pay all principal of and interest on the bonds becoming due during the next succeeding 12 months. Such funds are continually appropriated for the sole purpose ofpaying the principal and interest on any financing, including any interim financing, authorized by this Act. Provided, that, in the event the amount in the Land Compensation fund 

### is insufficient to cover any requisite payment upon such financing, the Governor shall, notwithstanding any law to the contrary, pay the remaining balance of such payment from the general fund. The funds in the Land Compensation Fund shall be nonlapsing except, upon certification by the Secretary of Finance that all principal and interest on all financing has been paid in full and discharged, any funds remaining in the Land Compensation Fund shall lapse to the general fund

. PL 13-39 

### § 4 (emphasis added). Authorizes use of the Land Compensation Fund for interim financing. October 21, 2004: Land Compensation Fund provisions repealed and re-enacted without changes

. PL 14-35 

### § 4(1804).