co 

Charlotte-Douglas· INTERNATIONAl AIRPORT 

December 8, 20 15 

Mr. Randall S. Fiertz 

Director, Office of Airport Compliance and Management Analysis 

Federal Aviation Administration 

800 [ndependence Avenue SW. 

Washington, DC 20591 

RE: 14 CFR Chapter I [Docket No. FAA- 2013- 0988] Policy and Procedures Concerning the Use of 

Airport Revenue; Proceeds From Taxes on Aviation Fuel- Action Plan for Charlotte Douglas 

International Airport 

Dear Mr. Fiertz: 

In compliance with the requirements set forth in CFR Chapter I [Docket No. FAA- 2013 - 0988] Policy 

and Procedures Concerning the Use of Airport Revenue; Proceeds From Taxes on Aviation Fuel (the 

" Policy") Charlotte Douglas International Airport ("CL T") submits the following Action Plan outlining 

the State and Local taxes applicable to aviation fuel at CLT and their current and future use. 

Current law appears not to be in compliance with the Policy, CLT believes the changes implemented by 

the North Carolina ('NC") Legislature this year will bring the law into compliance as of January I, 20 16. 

Current State and Local Taxes 

As the NC sales and use tax law on aviation fuel currently stands, a portion of the tax ( 1. 75% at the State 

level and .5% at the County level) is neither grandfathered nor properly utilized as required under the 

Policy. NC sales and use tax was first permanently implemented in 1939 at a rate of3% but did not 

become applicable to aviation fuel until February I, 1976. The sales and use tax rate increased to 4% in 

1991 and since then the rate has fluctuated until reaching the current tax rate of 4. 75%. County 

governments are also empowered to impose sales and use tax. In Mecklenburg County, where CLT 

resides, an additional2.5% sales and use tax applies to aviation fuel. Of the taxes imposed by 

Mecklenburg County, 2% was imposed prior to December 30, 1987 and the remaining .5% is earmarked 

specifically for the public transportation system. Neither the State nor the County imposed sales and use 

tax applicable to aviation fuel is treated as airport revenue or earmarked for a State aviation program. 

Future State and Local Taxes 

On September 30, 2015 the NC Legislature enacted Session Law 2015-259 which will bring the taxes on 

aviation fuel into compliance with the Policy as of January 1, 2016. Part IV of this law makes sales and 

use tax on aviation fuel a State tax only set at the combined general rate. Revenue generated from this tax 

charlotteairport.com I PO Box 19066 I Charlotte NC 28219 I P: 704.359.4000 I F: 704.359.4030 

0w'1nd 1nd Oo<"r1tf'd by the C1ty of Charlotte 
is remitted to the Highway Fund which then appropriates this money to the Division of Aviation of the 

Department of Transportation on an annual basis. The law specifically states that the revenue generated 

from aviation fuel is to be used for "prioritized capital improvements to public airports and time-sensitive 

aviation capital improvement projects for economic development purposes." It exempts commercial air 

carriers from the aviation fuel sales and use tax through January 1, 2020. A copy of the Session Law is 

attached for your review. 

As the changes will be implemented well before December 8, 2017 and provide that all funds from 

aviation fuel sales and use tax are remitted to the Division Aviation for airport purposes, CL T believes 

that it is in compliance with the Policy and its applicable Grant Assurances. Moving forward, CLT will 

continue to inspect any propose changes to this law and if necessary take all steps within our power to 

ensure continued compliance with the Policy. 

Notification Reg ui rem en ts 

Under the Policy, CL T has the obligation to notify those third party entities that have taxing authority 

over aviation fuel of their requirements under the Policy. These notifications were sent to the State of 

North Carolina as well as to Mecklenburg County. Copies of these letters are also attached for your 

reference. 

Thank you for your review of this matter and please let me know if you need anything further. 

Sincerely -

Brent Cagle 

Interim Aviation Director 

charlotteairport.com 1 PO Box 19066 1 Charlotte, NC 28219 I P: 704.359.4000 I F. 704.359.4030 

OwnPd and operated by the C1ty of ChJrlotte 
GENERAL ASSEMBLY OF NORTH CAROLINA 

SESSION 2015 

SESSION LAW 2015-259 

HOUSE BILL 117 

AN ACT TO ENACT THE NORTH CAROUNA COMPETES ACT. 

The General Assembly of North Carolina enacts: 

PART I. JDIG MODIFICATIONS 

read: 

SECTION 1.(a) G.S. 1438-437.51 is amended by adding a new subdivision to 

"§ 1438-437.51. Definitions. 

The following definitions apply in this Part: 

(I) Agreement. - A community economic development agreement under 

G.S. 1438-437.57. 

(2) Base period.- The period of time set by the Committee during which new 

employees are to be hired for the positions on which the grant is based. 

(3) Business. - A corporation, sole proprietorship, cooperative association, 

partnership, S corporation, limited liability company, nonprofit corporation, 

or other form of business organization, located either within or outside this 

State. 

(4) Committee.- The Economic Investment Committee established pursuant to 

G.S. 1438-437.54. 

( 4a) Development tier. - The classification assigned to an area pursuant to 

G.S. 1438-437.08. 

(5) Eligible position. - A position created by a business and filled by a new 

full-time employee in this State during the base period. 

(6) Full-time employee. - A person who is employed for consideration for at 

least 35 hours a week, whose wages are subject to withholding under Article 

4A of Chapter 105 of the General Statutes, and who is determined by the 

Committee to be employed in a permanent position according to criteria it 

develops in consultation with the Attorney General. The term does not 

include any person who works as an independent contractor or on a 

consulting basis for the business. 

(6a) High-yield project. - A project for which the agreement requires that a 

business invest at least five hundred million dollars ($500.000.000) in 

private funds and create at least 1.750 eligible positions. 

(7) New employee. - A full-time employee who represents a net increase in the 

number of the business's employees statewide. 

(8) Overdue tax debt.- Defined in G.S. 105-243.1. 

(9) Related member.- Defined in G.S. 105-130.7A. 

(10) Withholdings. - The amount withheld by a business from the wages of 

employees in eligible positions under Article 4A of Chapter 105 of the 

General Statutes." 

SECTION l.(b) G.S. 1438-437.52 reads as rewritten: 

"§ 1438-437.52. Job Development Investment Grant Program. 

(a) Program.- There is established the Job Development Investment Grant Program to 

be administered by the Economic Investment Committee. In order to foster job creation and 

investment in the economy of this State, the Committee may enter into agreements with 

businesses to provide grants in accordance with the provisions of this Part. The Committee, in 

consultation with the Attorney General, shall develop criteria to be used in determining whether 

the conditions of this section are satisfied and whether the project described in the application 

I ~ I ~ I 

* H 1 1 7 - V - 3 * 
location with the highest development tier area designation determines the minimum number of 

eligible positions that must be created. 

Development Tier Area Number of Eligible Positions 

10 

II 

Tier One 

Tier Two 

Tier Three 

20 

~50 

SECTION l.(d) G.S. 143B-437.55(c) reads as rewritten: 

"(c) Annual Reports. - The Committee shall publish a report on the Job Development 

Investment Grant Program on or before April 30 of each year. The Committee shall submit the 

report electronically to the House of Representatives Finance Committee, the Senate Finance 

Committee, the House of Representatives Appropriations Subcommittee on Natural and 

Economic Resources, the Senate Appropriations Committee on Natural and Economic 

Resources, and the Fiscal Research Division. The report shall include the following: 

(L I) A listing of all businesses making an application under this Part and an 

explanation of whether each business ultimately located the project in this 

State regardless of whether the business was awarded a grant for the project 

under this Part . 

.c.u_ru A listing. itemized by development tier, of the number of offers that have 

been calculated, estimated, or extended but were not accepted and the total 

award value of the offers. II 

SECTION l.(e) G.S. 1438-437.56 reads as rewritten: 

"§ 143B-437.56. Calculation of minimum and maximum grants; factors considered. 

(a) Subject to the liFRt~tieRs provisions of s~:~eseetieR subsections (a I) and (d) of this 

section, the amount of the grant awarded in each case shall be a percentage of the withholdings 

of eligible pesitioRs. Tke pereeRtage shall ee RO less theA teA perceRt (I 0%) aRd RO more tkaR 

se\'eRty fh'e perceRt (75%) of tke \\'itkkoldiRgs of tke eligible positions for a period of years. 

The percentage shall be no more than eighty percent (80%) for a development tier one area and 

no more than seventy-five percent (75%) for any other area. If the project will be located in 

more than one area designation, the location with the highest area designation determines the 

maximum percentage to be used. The percentage used to determine the amount of the grant 

shall be based on criteria developed by the Committee, in consultation with the Attorney 

General, after considering at least the following: 

(1) The number of eligible positions to be created. 

(2) The expected duration of those positions. 

(3) The type of contribution the business can make to the long-term growth of 

the State's economy. 

(4) The amount of other financial assistance the project will receive from the 

State or local governments. 

(5) The total dollar investment the business is making in the project. 

(6) Whether the project utilizes existing infrastructure and resources in the 

community. 

(7) Whether the proj ect is located in a development zone. 

(8) The number of eligible positions that would be filled by residents of a 

development zone. 

(9) The extent to which the project will mitigate unemployment in the State and 

locality . 

.@11 Notwithstanding the percentage specified by subsection (a) of this section. if the 

project is a high-yield project, the business has met the investment and job creation 

requirements, and, for three consecutive years. the business has met all terms of the agreement 

the amount of the grant awarded shall be no more than one hundred percent (1 00%) of the 

withholdings of eligible positions for each consecutive year the business maintains the 

minimum job creation requirement and meets all terms of the agreement. A business receiving 

an enhanced percentage of the withholdings of eligible positions under this subsection that fails 

to maintain the minimum job creation requirement or meet all terms of the agreement will be 

disqualified from receiving the enhanced percentage and will have the applicable percentage set 

House Bill 117-Ratified Session Law 2015-259 Page 3 
the period kOFH J~:~ly I, 20 15, to December 31,2015, the FHOKiFHI:Iffi total liability for grants 

awardee, iRci~:~Eiing ar:Ho~:~nts traa:sferreEi to the Utility Aeco~:~nt p~:~rs~:~aRt to G.S. 143B 437.61, is 

seven FHillion fi•;e h~:~nEireEi tho~:~sanEi elollars ($7,500,000). thirty-five million dollars 

($35.000,000) if no grant is awarded for a high-yield project and is fifty million dollars 

($50,000,000) if a grant is awarded for a high-yield project. No agreement may be entered into 

that, when considered together with other existing agreements governing grants awarded during 

an applicable time period provided in this subsection, could cause the State's potential total 

annual liability for grants awarded in that time period to exceed the designated maximum 

amount." 

SECTION l.(i) The Department of Commerce shall study the factors that have 

contributed to the termination of grants awarded pursuant to Part 2G of Article I 0 of Chapter 

1438 of the General Statutes. In conducting the study required by this subsection, the 

Department shall examine the efforts of other states that have permitted similar economic 

development programs to incent businesses to create jobs for the purpose of determining best 

practices for remediating underperformance of participating businesses in order to lower the 

incidence of community economic development agreements under G.S. 1438-437.57 ending in 

termination. The Department shall submit the report to the H!ouse of Representatives Finance 

Committee, the Senate Finance Committee, the House of Representatives Committee on 

Agriculture and Natural and Economic Resources, the Senate Appropriations Committee on 

Natural and Economic Resources, and the fiscal Research Division no later than March 1, 

2016. 

SECTION 1.(j) Subsections (d) and (h) of this section are effective when this act 

becomes law. The remainder of this section becomes effective July I, 2015, and applies to 

awards made under Part 2G of Article 10 of Chapter 143B of the General Statutes on or after 

that date. 

PART II. ONE NC MODIFICATIONS 

SECTION 2.(a) G.S. 143B-437.72(c) reads as rewritten: 

"(c) Local Government Grant Agreement.- An agreement between the State and one or 

more local governments shall contain the following provisions: 

(1) A commitment on the part of the local government to match the funds 

allocated by the State:-State, as provided in this subdivision. A local match 

may include cash, fee waivers, in-kind services, the donation of assets, the 

provision of infrastructure, or a combination of these. 

" 

a. For a local government in a development tier one area, as defined in 

G.S. 1438-437.08, the State shall provide no more than three dollars 

($3.00) for every one dollar ($1.00) provided by the local 

government. 

.!1. For a local government in a development tier two area, as defined in 

G.S. 1438-437.08, the State shall provide no more than two dollars 

($2.00) for every one dollar ($1.00) provided by the local 

government. 

c. For a local government in a development tier three area. as defined in 

G.S. 1438-437.08. the State shall provide no more than one dollar 

($1.00) for every one dollar ($1.00) provided by the local 

government. 

SECTION 2.(b) This section is effective when this act becomes law. 

PART III. DATA CENTER INFRASTRUCTURE ACT 

SECTION 3.(a) G.S. 105-164.3 reads as rewritten: 

"§ 105-164.3. Definitions. 

The following definitions apply in this Article: 

(33c) Qualifying datacenter. - A datacenter that satisfies each of the following 

conditions: 

a. The datacenter meets the wage standard and health insurance 

requirements ofG.S. l43B-437.08A. 

House Bill 117-Ratified Session Law 2015-259 Page 5 
computed from the date the taxes would have been due if the exemption had 

not been allowed. For all other forfeitures, interest is computed from the 

time as of which the datacenter support equipment or electricity was put to a 

disqualifying use. The past taxes and interest are due 30 days after the date 

the exemption is forfeited. A taxpayer that fails to pay the past taxes and 

interest by the due date is subject to the provisions of G.S. 105-236." 

SECTION 3.(c) This section becomes effective January l , 2016, and applies to 

sales made on or after that date. 

PART IV. SALES TAX RELATIVE TO AVIATION 

SECTION 4.1.(a) G.S. I 05-164.3 is amended by adding the following new 

subdivisions to read: 

"§ 105-164.3. Definitions. 

The following definitions apply in this Article: 

.{lh} Aviation gasoline.- Defined in G.S. 105-449.60. 

(16b) Jet fuel.- Defined in G.S. 105-449.60. II 

SECTION 4.l.(b) G.S. 105-164.4(a) is amended by adding a new subdivision to 

read: 

"(a) A privilege tax is imposed on a retailer engaged in business in the State at the 

percentage rates ofthe retailer's net taxable sales or gross receipts, listed in this subsection. The 

general rate of tax is four and three-quarters percent (4.75%). The percentage rates are as 

follows: 

read: 

.(12} The combined general rate applies to the gross receipts derived from the sale 

of aviation gasoline and jet fuel." 

SECTION 4.1.( c) G.S. 1 05-164.13 is amended by adding a new subdivision to 

"§ 105-164.13. Retail sales and use tax. 

The sale at retail and the use, storage, or consumption in this State of the following tangible 

personal property, digital property, and services are specifically exempted from the tax imposed 

by this Article: 

Motor Fuels Group. 

(lla) Sales of diesel fuel to railroad companies for use in rolling stock other than 

motor vehicles. The definitions in G.S. I 05-333 apply in this subdivision. 

il.lhl Sales of aviation gasoline and jet fuel to an interstate air business for use in a 

commercial aircraft. For purposes of this subdivision, the term "commercial 

aircraft" has the same meaning as defined in subdivision (45a) of this 

subsection. This subdivision expires January 1, 2020. II 

SECTION 4.l.(d) Part 8 of Article V of Chapter 105 of the General Statutes is 

amended by adding a new section to read: 

"§ 105-164.44M. Transfer to Division of Aviation. 

The net proceeds of the tax collected on aviation gasoline and jet fuel under G.S. 105-164.4 

must be transferred within 75 days after the end of each fiscal year to the Highway Fund. This 

amount is annually appropriated from the Highway Fund to the Division of Aviation of the 

Department of Transportation for prioritized capital improvements to public airports and 

time-sensitive aviation capital improvement projects for economic development purposes." 

SECTION 4.l.(e) Notwithstanding G.S. 105-164.14A(a)(l), an interstate 

passenger air carrier is allowed a refund of the sales and use tax paid by it on fuel in excess of 

one million two hundred fifty thousand dollars ($1 ,250,000) for the period beginning July l , 

2015, and ending December 31, 2015. 

SECTION 4.1.(t) Subsections (a) through (d) of this section become effective 

January I, 2016, and apply to sales made on or after that date. The remainder of this section is 

effective when this act becomes law. 

House Bill 117-Ratified Session Law 2015-259 Page 7 
SECTION 4.2.( d) G.S. l 05-164.13 is amended by adding a new subdivision to 

read: 

"§ 105-164.13. Retail sales and use tax. 

The sale at retail and the use, storage, or consumption in this State of the following tangible 

personal property, digital property, and services are specifically exempted from the tax imposed 

by this Article: 

( 45d) Parts and accessories for use in the repair or maintenance of a qualified 

aircraft or a qualified jet engine. 

" 

SECTION 4.2.(e) G.S. 105-164.27A is amended by adding a new subsection to 

read: 

"(a2) Qualified Jet Engine.- A person who purchases a qualified jet engine may apply to 

the Secretary for a direct pay permit for the purchase of a qualified jet engine. A direct pay 

permit issued for a qualified jet engine does not apply to any purchase other than the purchase 

of a qualified jet engine. The maximum. use tax on a qualified jet engine is two thousand five 

hundred dollars C$2,500). A person who purchases a qualified jet engine under a direct pay 

permit must file a return and pay the tax due monthly to the Secretary." 

SECTION 4.2.(t) G.S. I 05-467(a) reads as rewritten: 

"(a) Sales Tax.- The sales tax that may be imposed under this Article is limited to a tax 

at the rate of one percent (1 %) of the following: 

(I) A retailer's net taxable sales and gross receipts that are subject to the general 

rate of sales tax imposed by the State under G.S. I 05-164.4 except the tax 

does not apply to the sales price of a maR~::~faemreel Rome or a moel~::~lar 

~an item taxable under G.S. 1 05-164.4(a)(la). 

" 

SECTION 4.2.(g) This Part becomes effective October I, 2015, and applies to 

sales made on or after that date. 

PART V. EXEMPT MOTOR VEHICLE SERVICE CONTRACTS FROM SALES TAX 

SECTION 5.(a) G.S. 105-164.4l(b)(l) reads as rewritten: 

"(b) Exemptions.- The tax imposed by this section does not apply to the sales price of 

or the gross receipts derived from a service contract applicable to any of the following items: 

(I) An item exempt from tax under this l\rtiele, otRer tRaR a motor veRiele 

eKeFR}3t from taK l-:IReier G.S. I Q5 1 e4 .13(32).Article." 

SECTION 5.(b) G.S. 105-164. 13 is amended by adding a new subdivision to read: 

"§ 105-164.13. Retail sales and use tax. 

The sale at retail and the use, storage, or consumption in this State of the following tangible 

personal property, digital property, and services are specifically exempted from the tax imposed 

by this Article: 

(62a) A replacement item, a repair part. or repair, maintenance, and installation 

services to maintain or repair tangible personal property or a motor vehicle 

pursuant to a manufacturer's warranty or a dealer's warranty. For purposes of 

this subdivision. the following definitions apply: 

a. Dealer's warranty. - An explicit warranty the seller of an item 

extends to the purchaser of the item as part of the purchase price of 

the item . 

.11. Manufacturer's warranty. - An explicit warranty the manufacturer of 

an item extends to the purchaser of the item as part of the purchase 

price of the item." 

SECTION 5.(c) If House Bill 97,2015 Regular Session ofthe General Assembly, 

becomes law, then G.S. 105-164.13(61a), as enacted by Section 32.18(e) of House Bill 97, 

2015 Regular Session of the General Assembly, and G.S. 105-164.13(62), as amended by S.L. 

2015-6 and by House Bill 97, 2015 Regular Session of the General Assembly, read as 

rewritten: 

"§ 105-164.13. Retail sales and use tax. 

House Bill 117-Ratified Session Law 2015-259 Page 9 
(25a) Operator. - A person provided with the lease or rental of tangible personal 

property or a motor vehicle to operate, drive, or maneuver the tangibl-e 

personal property or motor vehicle and whose presence. skill, knowledge. 

and expertise are necessary to bring about a desired or appropriate effect. 

The person must do more than calibrate, test, analyze, research, probe, or 

monitor the tangible personal property or motor vehicle. II 

SECTION 6.(b) G.S. 105-164.13 is amended by adding a new subdivision to read: 

"§ 105-164.13. Retail sales and use tax. 

The sale at retail and the use, storage, or consumption in this State of the following tangible 

personal property, digital property, and services are specifically exempted from the tax imposed 

by this Article: 

,(Q.2} The sale of an engine provided with an operator to a professional 

motorsports racing team or a related member of a team for use in 

competition in a sanctioned race series. This subdivision expires January l, 

2020." 

SECTION 6.(c) G.S. 105-164.4l(b)(3) reads as rewritten: 

"(b) Exemptions.- The tax imposed by this section does not apply to the sales price of 

or the gross receipts derived from a service contract applicable to any of the following items: 

(3) Aft-A transmission, an engine. rear-end gears. and any other item purchased 

by a professional motorsports racing team or a related member of a team for 

which the team may receive a sales tax refund under 

G.S. 105 1~4.14A(5).G.S. 105-164.14A(a)(5). This subdivision expires 

January I, 2020." 

SECTION 6.(d) G.S. l05-164.14A(a) reads as rewritten: 

"(a) Refund. - The following taxpayers are allowed an annual refund of sales and use 

taxes paid under this Article: 

(4) Motorsports team or sanctioning body. -A professional motorsports racing 

team, a motorsports sanctioning body, or a related member of such a team or 

body is allowed a refund of the sales and use tax paid by it in this State on 

aviation fuel that is used to travel to or from a motorsports event in this 

State, to travel to a motorsports event in another state from a location in this 

State, or to travel to this State from a motorsports event in another state. For 

purposes of this subdivision, a "motorsports event" includes a motorsports 

race, a motorsports sponsor event, and motorsports testing. This subdivision 

is repealed for purchases made on or after JaRHary 1, 201 a .January I, 2020. 

(5) Professional motorsports team. - A professional motorsports racing team or 

a related member of a team is allowed a refund of fifty percent (50%) of the 

sales and use tax paid by it in this State on tangible personal property, other 

than tires or accessories, that comprises any part of a professional 

motorsports vehicle. For purposes of this subdivision, "motorsports 

accessories" includes instrumentation, telemetry, consumables, and paint. 

This subdivision is repealed for purchases made on or after JaRHary I , 

~January 1. 2020. 

" 

SECTION 6.(e) This section is effective when this act becomes law. Subsection (c) 

of this section applies retroactively to service contracts purchased on or after January I, 2014. 

PART VII. TAX COMPLIANCE AND TAX FRAUD PREVENTION 

SECTION 7.l.(a) G.S. 105-163.7 reads as rewritten: 

"§ 105-163.7. Statement to employees; information to Secretary. 

(a) Report to Employee. - Every employer required to deduct and withhold from an 

employee's wages under G.S. l 05-l63.2 shall furnish to the employee in respect to the 

remuneration paid by the employer to such employee during the calendar year, on or before 

January 31 of the succeeding year, or, if the employment is terminated before the close of the 

House Bill 117-Ratified Session Law 2015-259 Page II 
SECTION 7.1.(e) G.S. 105-163.3 reads as rewritten: 

"§ 105-163.3. Certain payers must withhold taxes. 

W Rett:~rns. A payer mt:~st file a ret~:~rn .... ·ith: th:e Secreta£)' and pay the '+Yithh:eld ta){es 

to the Secretary in accordaRce with the reqt:~irements in G.S. 105 163.6. 

(d) Returns, Annual Statement Statement, and Report. - A payer required to deduct and 

withhold from a contractor's compensation under this section must file a return. pay the 

withheld taxes, and report the amount withheld in the time and manner required under 

G.S. 105-163.6 and G.S. 105- 163.7 as if the compensation were wages.giYe the contractor a 

written statement that sets o~::~t tke following information and any other information req~:~ired ay 

t:Ae Secretary: 

f8 

~ 

~ 

f41 

Tl:le payer's name, adaress, ana taxpayer identifieation n~::~maer. 

Tl:le eontraetor's name, aeieiress, ana taxpayer iaentification n~::~maer. 

Tl:le total amo~::~Rt of compensation paid a~::~ring tke calendar year. 

Tl:le total amo1::1nt Eieaucteel anel witkkeld 1:1naer t!:tis sectioA d~::~ring ti:te 

ealendar year. 

Tkis statement is Elt:~e ay Jan~::~ary 31 following tl=te end of the calenEiar year, l:lnless tke personal 

serYices for wkick tke payer is paying are eompleted aefore th:e end oftJ:te calendar year and tJ:te 

contractor reett:~ests tke statement wken tke serYices are completed. In tkis circ~:~mstance, tke 

statement is d~::~e 'Nitl:lin 45 days after ti'le payer's last payment of compensation to the 

contractor. 

Eack payer sllall file with th:e Secretary an aAfll:l&l report tllat compiles the information 

contained in each of the payer's statements to contractors and any other information required i:J)' 

th:e Secretary in ti'le manner reet~:~i:reei ay t:Ae Secretary. This report is al:le on tke aate preseriaeei 

ay th:e Secretary and is in lie~:~ ofth:e information report req~::~ired by G.S. 105 154. 

" 

SECTION 7.1.(f) Subsection (b) of this section is effective for taxable years 

beginning on or after January 1, 2016, and applies to information returns required to be filed 

with the Secretary in 2017 for the 2016 taxable year. The remainder of this section is effective 

for taxable years beginning on or after January 1, 2015, and applies to information returns 

required to be filed with the Secretary in 20 16 for the 2015 taxable year. 

SECTION 7.2. G.S. 105-237 reads as rewritten: 

"§ 105-237. Wai~'eF ef pe&<iessWaiver; installment payments. 

(a) Waiver.- The Secretary may, upon making a record of the reasons therefor, red~:~ce 

do the following: 

ill 

ill 

Reduce or waive any penalties provided for in this Subchapter. 

Reduce or waive any interest provided for in this Subchapter on taxes 

imposed prior to or during a period for which a taxpayer has declared 

bankruptcy under Chapter 7 or Chapter 13 of Title 11 of the United States 

Code. 

(b) Installment Payments. - After a proposed assessment of a tax becomes final, the 

Secretary may enter into an agreement with the taxpayer for payment of the tax in installments 

if the Secretary determines that the agreement will facilitate collection of the tax. The 

agreement may include a waiver of penalties but may not include a waiver of liability for tax or 

interest due. The Secretary may modify or terminate the agreement if one or more of the 

following findings is made: 

(I) Information provided by the taxpayer in support of the agreement was 

inaccurate or incomplete. 

(2) Collection of tax to which the agreement applies is in jeopardy. 

(3) The taxpayer's financial condition has changed. 

(4) The taxpayer has failed to pay an installment when due or to pay another tax 

when due. 

(5) The taxpayer has failed to provide information requested by the Secretary. 

The Secretary must give a taxpayer who has entered into an installment agreement at least 

30 days' written notice before modifying or terminating the agreement on the grounds that the 

taxpayer's financial condition has changed unless the taxpayer failed to disclose or concealed 

assets or income when the agreement was made or the taxpayer has acquired assets since the 

agreement was made that can satisfy all or part of the tax liability. A notice must specify the 

basis for the Secretary's finding of a change in the taxpayer's financial condition." 

House Bill 117-Ratified Session Law 2015-259 Page 13 
PART VIII. EFFECTIVE DATE 

SECTION 8. Except as otherwise provided, this act is effective when it becomes 

law. 

In the General Assembly read three times and ratified this the 24th day of 

September, 2015. 

s/ Daniel J. Forest 

President of the Senate 

s/ Paul Starn 

Presiding Officer of the House of Representatives 

s/ Pat McCrory 

Governor 

Approved 11:38 a.m. this 30th day of September, 2015 

House Bill 117-Ratified Session Law 20 I 5-259 Page 15 
co 

Charlotte· Douglas· I NTERNATIONAL AIRPORT 

December 8, 2015 

Governor Pat McCrory 

North Carolina Office of the Governor 

20301 Mail Service Center 

Raleigh, NC 27699 

Re: 14 CFR Chapter I [Docket No. FAA - 2013- 0988] Policy and Procedures Concerning the Use of 

Airport Revenue; Proceeds From Taxes on Aviation Fuel 

Dear Governor McCrory: 

On November 3, 2014, the Federal Aviation Administration ("FAA") issued 14 CFR Chapter I [Docket 

No. FAA- 2013 - 0988] Policy and Procedures Concerning the Use of Airport Revenue; Proceeds From 

Taxes on Aviation Fuel ("Policy"). Under this Policy the FAA clarified that all revenue from taxes 

applicable to aviation fuel, regardless of whether the tax is specific to aviation fuel or generally 

applicable, must be treated as airport revenue or applied to a State aviation program. The Policy also 

obligates Charlotte Douglas International Airport ("CL T") to notify all third parties with the power to 

impose applicable taxes of their obligations under the Policy. 

The State of North Carolina is a third party entity with the power to impose taxes on aviation fuel at CL T. 

As such, under the Policy the State of North Carolina is obligated to ensure that all taxes on aviation fuel 

are either used for "the capital or operating cost of the airport, the local airport system, or other local 

facilities owned or operated by the airport owner or operator and directly and substantially related to air 

transportation of passengers or property" or a State aviation program. Non-compliance with the Policy 

could result in civil penalties imposed by the Department of Justice of up to fifty thousand dollars 

($50,000) or additional sanctions under the State Block Grant Program. 

North Carolina Legislature passed Session Law 2015-259 on September 30,2015 which goes into effect 

on January 1, 2016 and may fulfill the State ofNorth Carolina's obligations under the Policy. Part IV of 

this law makes sales and use tax on aviation fuel a State only tax and sets the rate at the combined general 

rate. Revenue generated from this tax is remitted to the Highway Fund which then appropriates this 

money to the Division of Aviation of the Department of Transportation on annual basis. The law 

specifically states that the revenue generated from aviation fuel is to be used for "prioritized capital 

improvements to public airports and time-sensitive aviation capital improvement projects for economic 

development purposes." It exempts commercial air carriers from the aviation fuel sales and use tax 

through January 1, 2020. 

charlotteairport.com 1 PO Box 19066 I Charlotte, NC 28219 I P: 704.359.4000 I F: 704.359.4030 

Owned and operated by the City of Charlotte 
Please be aware that any future changes or additions to taxes on aviation fuel will need to continue to be 

in compliance with the Policy. If you have any questions or concerns, please feel free to reach out to me 

at (704) 359 - 4035. 

SincerelyBrent Cagle 

Interim Aviation Director 

charlotteairport.com 1 PO Box 19066 I Charlotte, NC 28219 I P: 704.359.4000 I F: 704.359.4030 

Owned and operated by the City of Charlotte 
co 

Charlotte-Douglas· 

INTERNATIONAL AIRPORT 

December 8, 2015 

Commissioner Trevor Fuller 

Chairman, Mecklenburg County Commissioners 

600 East 41

h Street 

Charlotte, NC 28202 

Re: 14 CFR Chapter I [Docket No. FAA- 2013- 0988] Policy and Procedures Concerning the Use of 

Airport Revenue; Proceeds From Taxes on Aviation Fuel 

Dear Commissioner Fuller: 

On November 3, 2014, the Federal Aviation Administration ("FAA") issued 14 CFR Chapter I [Docket 

No. FAA - 2013 - 0988] Policy and Procedures Concerning the Use of Airport Revenue; Proceeds From 

Taxes on Aviation Fuel ("Policy"). Under this Policy the FAA clarified that all revenue from taxes 

applicable to aviation fuel, regardless of whether the tax is specific to aviation fuel or generally 

applicable, must be treated as airport revenue or applied to a State aviation program. The Policy also 

obligates Charlotte Douglas International Airport ("CLT") to notifY all third parties with the power to 

impose applicable taxes of their obligations under the Policy. 

Mecklenburg County is a third party entity with the power to impose taxes on aviation fuel at CL T. As 

such, under the Policy Mecklenburg County is obligated to ensure that all taxes on aviation fuel are either 

used for ''the capital or operating cost of the airport, the local airport system, or other local facilities 

owned or operated by the airport owner or operator and directly and substantially related to air 

transportation of passengers or property" or a State aviation program. Non-compliance with the Policy 

could result in civil penalties imposed by the Department of Justice of up to fifty thousand dollars 

($50,000) or additional sanctions under the State Block Grant Program. 

North Carolina Legislature passed Session Law 20 15-259 on September 30, 2015 which goes into effect 

on January 1, 2016 and may fulfill Mecklenburg County's obligations under the Policy. Part IV of this 

law makes sales and use tax on aviation fuel a State only tax and sets the rate at the combined general 

rate. Revenue generated from this tax is remitted to the Highway Fund which then appropriates this 

money to the Division of Aviation of the Department ofTransportation on annual basis. The law 

specifically states that the revenue generated from aviation fuel is to be used for "prioritized capital 

improvements to public airports and time-sensitive aviation capital improvement projects for economic 

development purposes." It exempts commercial air carriers from the aviation fuel sales and use tax 

through January 1, 2020. 

charlotteairport.com I PO Box 19066 I Charlotte, NC 28219 I P: 704.359.4000 I F: 704.359.4030 

Owned and operated by the City of Charlotte