Sandra Gutierrez-Carver

Airport Manager

sandygutierrez@co.imperial.ca.us

IMPERIAL COUNTY AIRPORT

1099 Airport Road

Imperial, CA 92251

(760) 355-7944

Fax: (760) 355-2485

December 8, 2015

Mr. James T. Brown

Finance Management

Federal Aviation Administration

800 Independence Avenue SW

Washington, DC 20591

Subject: Action Plan Submission Pursuant to FAA Policy and Procedures Concerning the Use of 

Airport Revenue (79 Red. Reg. 66282-01, November 7, 2014).

Dear Mr. Brown:

This letter is in response to the request for an action plan for the Imperial County to convey its 

intent to comply with the FAA ruling related to sales tax revenues derived from aviation fuel 

sales to the extent that ruling complies with federal law. This includes the process likely 

necessary to amend any non-compliant local ordinances to achieve compliance and the 

development of reporting requirements and tracking systems for specific information on aviation 

fuel tax revenues which in California means “jet fuel” as other types of aviation fuels are exempt 

from sales tax in this state. It is our understanding that the State of California will be submitting 

an Action Plan pertaining only to the state’s portion of the tax.

California’s state and local governments already provide extensive services to airports including 

infrastructure maintenance, fire protection, public safety, environmental protection and noise 

abatement. These services and improvements are funded with general sales taxes and other taxes 

and Imperial County believes these local expenditures exceed the sales tax revenues derived 

from the sale of aviation fuel.

Applicable Law that May Require Amendments for Compliance

 Measure D was re-enacted in November 2008 for forty years, 1⁄2 cent sales tax. Originally 

passed by voters in 1989. 

 Local Airports include: Imperial County Airport.

In addition to the locally imposed transaction and use tax rate, Imperial County receives 

revenues derived from the state sales and use tax rate for the purposes of health and human 

services, criminal justice and transportation. These statewide voter-approved tax rates have been 

designated for specific purposes. It is our understanding that the state will provide an action plan 

response as it relates to necessary steps for assuring compliance related to these revenues.
Reporting Requirement and Tracking System

Imperial County in conjunction with its advisors has begun to identify the required data and steps 

necessary to comply. The internal process to undertake this effort, including developing a 

tracking system for discrete information on aviation fuel tax revenues, is complex and extensive. 

For example, the State Board of Equalization, the tax collection agency with which Imperial 

County has a contract for sales tax collections, does not require jet fuel sellers to segregate sales 

tax revenue derived from the sale of jet fuel from other types of taxable sales make by the same 

vendor. Therefore, it is presently impossible for Imperial County to determine the exact amount 

of sales tax derived from sales of jet fuel. Local agencies would need the state to change its tax 

reporting standards to require fuel sellers to quantify the amount of tax derived from the sale of 

aviation fuel to achieve compliance. Segregating and reporting the correct amount of tax revenue 

will further complicate California’s already complex sales tax system and increase administrative 

costs.

Transition Period

If, contrary to current expectations, Imperial County determines the its expenditures on airport 

capital and operating cost do not exceed sales tax revenues derived from aviation fuel, it will 

consider legislative solutions. It is the intent of Imperial County to attempt to comply with your 

requirements set forth by the FAA ruling to the extent it complies with federal law. Imperial 

County will notify the FAA of specific actions, if any, to be completed during the transition 

period and work with the state to ensure compliance before the December 8, 2017 deadline.

Sincerely,

Sandra Gutierrez-Carver

Imperial County Airport Manager

cc: Jay Chamberlain, Department of Finance