2009 D e c i sion s O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit
9-14-2009 

# T wp of T inicum v . D ept of T r ansp or t at ion
P r e c e de nt i al or N on-P r e c e de nt i al : P r e c e de nt i al D ocke t N o . 08-1830

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Thi s de c i sion i s br ou ght t o you for f r e e and ope n a c c e s s b y the O p inion s of the U nit e d S t at e s C our t of Appe al s for the Thir d C ir c uit at V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. It h as be e n a c c ept e d for inclusion in 2009 D e c i sion s b y an author i z e d a dmini s tr at or of V i ll anova U nive r sity S choo l of L a

w Di git al Reposit ory

. F or mor e inform at ion, p le as e c ont a ct Be n j amin . C arl s on@l a

w . vi ll anova . e du
. Re c omme nde d C it at ion

" T wp of Tinic um v

. D ept of T r an spor t at ion" (2009). 2009 D e cisio n s . P ape r 542. http://d i git alc ommon s .l a

w . vi ll anova . e du/thir dc ir c uit_2009/542H onor abl e M arvi n J
. G arbi s , Seni or U ni t ed St at es D i s t r i ct * J udge fort he D i s t r i ctof M ary l and, s i t t i ng bydes i gnat i on. P RE CE DE NT I AL

UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

_____________ N o. 08- 1830

_____________ T OWNS HI P OF T I NI CU M , DE L AWARE CO UNT Y,

P E NNS YL VANI A, P eti ti o n er

v. UNI T E D S T AT E S OF AM E RI CA DE P AR T M E NT OF

T RA NS P OR T AT I ON, OFF I CE OF THE S ECR ET ARY, W ASHI NGTON, D. C. AI R T RA NS P OR T AS S OC I AT I ON OF AM E RI CA , IN C .; AI RPORTS CO UN CI L I NTER NA TI ON AL- NO RTH AM E RI CA , Interv en o rs ( Pur s uantt o C l erk O r derdat ed 4/ 28/ 08) O n Pet i t i on forR evi ew of an O r derof the U ni t ed St at es D epart m entof Tra ns por t at i on

O r der2008- 3- 18 A r gued J anuary6, 2009 B efor e: C H A G A R E S and H A R D I M A N , C i r cui tJ udges , and

G A R B I S , D i s t r i ctJ udge.

*2 ( Fi l ed: Sept ember14, 2009) Fr anci s G

. X
. Pi l l eggi ( ar gued) S h e ld o n K . R e n n ie Sophi a Si ddi qui F o x R o th sc h ild 9 1 9 N . M a rk e t S t. C i t i zens B ank C t r . , St e. 1300 W i l m i ngt on, D E 19801 C ouns el forPet i t i oner Da l e C. An d r e ws Paul M
. G ei er M aryF. W i t hum ( ar gued) U
. S. D epart m entof Tra ns por t at i on O ffi ce of G ener al C ouns el 1 2 0 0 New J e r s e yAve , S. E. W as hi ngt on, D C 20590 R ober tB
. N i chol s on R o b ert J. W igg ers U
. S. D epart m entof J us t i ce A ppel l at e Sect i on 9 5 0 P e n n s y l v a n i a A v e . , N
. W. W as hi ngt on, D C 20530 C ouns el forR es pondent M
. R oyG ol dber g ( ar gued) Sheppar d, M ul l i n, R i cht er& H ampt on 1 3 0 0 I St

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. L aM onaca J
. D ennyShupe S c h n a d e r H a rriso n S e g a l & L e w is 1600 M arketSt

. , St e. 3600 Phi l adel phi a, PA 19103 C ouns el forI nt ervenorA i rT r ans por tA s s oci at i on of A m er i ca, I nc.3 S c o tt P . L e w is D ougl as H
. W i l ki ns A nder s on & K r ei ger 1 C anal Par k, St e. 200 C ambri dge, M A 02141 C o u n se l f

o r In ter v e n o r A irp o rts C o u n c il In ter n a tio n a l-N o rth A m er i ca

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_____________ C H A G A R E S, C i r cui tJ udge. T h is c a se re q u ire s u s to d e ter m in e w h e th e r a m u n icip a lity ma y , c o n s i s t e n t wi t h t h e An t i

- He a d Ta x Ac t( “ AHTA” ) , 4 9 U. S

. C. § 4 0 1 1 6 , re q u ire a irline s to p a y a tax e v e ry tim e o n e o f th e ir f lig h ts lan d s w ith in th e m u n icip a lity’s b o rd e rs. T in icu m T o w n sh ip ( “Ti ni cum”) enac t ed an or di nance es t abl i s hi ng j us ts uch a t ax. A i rl ine i ndus t r ygr oups compl ai ned t o t he D epart m entof T r a n s p o r t a t i o n ( “ DOT ” ) , a r g u i n g t h a t t h e t a x v i o l a t e d t h e AHT A. T h e D O T ag ree d w ith the ind u stry g rou p s an d issue d a d ec laratory or der i n v a l i d a t i n g t h e o r d i n a n c e . Ti n i c u m f i l e d a p e t i t i o n f

or r evi ew , and w e w i l l denyt hatpet i t i on. I
. T he C i t yof Phi l adel phi a ( “C i t y ”) ow n s an d oper at es t he Phi l adel phi a I nt ernat i onal A i rpor t (“A i rpor t ”)

. Som e of the A i rport ’s runw ay s, ho w ever, are l ocated w i t hin T i nicum ’s bo rder s. A b o u t f if ty y e a rs a g o , a d isp u te a ro se o v e r w h e th e r T in icu m c o u ld char ge the C i t ypr oper t yt ax fort he A i rpor t ’ s us e o f thatl and. R a th e r th a n lit ig a te th e m a tter to c o m p letio n , T in icu m a n d th e C ity se ttl e d

. T h e C ity a g re e d to m a k e p e rio d ic p a ym e n ts to T in icu m in excha nge forcont i nued runw ayacc es s . B utt hatagr eementexpi r ed – and the paym ent s , w hi ch amount ed t o as m uch a s $ 1
. 1 m i l l i on per y ear , s t opped – i n M ay 2007. U nabl e t o r eac h a new agr eement w i t h t he C i t y , on J une 18, 2007 T i ni cum enact ed O r di nance 2007- 80 9, w hich provides:4 [T]he r e s hal l be i m pos ed upon al l ai r cr aft us er s a pr i vi l ege fee

. . . forus e of pr oper t yl ocat ed w it h i n T i ni cum T ow ns hi p forl andi ng of ai r cr aft [of] $. 03 perone thous and ( 1, 000) pounds of partt her eof of appr oved maxi m um lan d e d w e ig h t. F e e s w ill b e d e ter m in e d b yw e ig h t li ste d in t he Feder al A vi at i on A dm i ni s t r at ion [( “FA A ”) ] t ype c e rtific a te d a ta s h e e t. A p p e n d ix (A p p .) 2 6 -2 7
. T he or di nance beca m e eff ect i ve on J ul y 18, 2007. A pp. 28. O vert he cour s e of the nextm ont h, pas s engerai r l i n es (i ncl udi ng U ni t ed, Sout hw es t , and D el t a) and par cel s hi pper s ( i ncl udi ng Feder al E xpr es s and U ni t ed Par cel Ser vi ce) l anded fl i ght s att he A i rpor ton runw ay s l ocat ed w i t hi n T i ni cum, but r efus ed t o payt he t ax. T he A i rT r ans por tA s s oci at i on ( “A T A ”) and t he A i rC arr i er A ssoci at i on of A m eri ca (“A C A A ”), i nd ust rygroup s w ho se me mb e r s h i p i n c l u d e s ma n yo f t h o s e c a r r i e r s , p e t i t i o n e d t h e DOT to re v iew th e o rd in a n c e a n d in v a lid a te it o n th e g ro u n d th a t it vi ol at ed the A H T A

. A ft err ece i vi ng w r i t t en s ubm i s s i ons fr om AT A, AC AA, T i n i c u m, a n d o t h e ri n t e r e s t e d p a r t i e s , t h e DOT i s s ued an or deragr eei ng w i t h t he i ndus t r ygr oups and dec l ar i ng t he or di nance i nval i d. T i ni cum t hen fi l ed a pet i t i on forr evi ew of the D O T ’s adm i nis t rat i ve o rder

. A T A and t he A i rport s C ou ncil I nt ernat i onal

- N or t h A m er i ca ( “A C I

- N A ”) , a coal i t i on of l o cal governm ent s t hatow n an d o p er at e ai rpor t s , ent er ed the ca s e as i n t e r v e n o r s , u r g i n g t h e d e n i a l o f T i n i c u m’ s p e t i t i o n f

o rr e v i e w. II. T he D O T had subj ectm at t erj ur i s di ct i on overt he A T A and t h e ACAA’ s p e t i t i o n f

o r a d e c l a r a t o r y o r d e r p u r s u a n tt o 4 9 U. S

. C. § 40113( a)

. T hi s C our t h as subj ectm at t erj ur i s di ct i on t o r evi ew the D O T ’s de clarato ryo rde r pu rsua n t t o § 4 6 1 1 0 (a) an d (c). T he D O T i s char ged w i t h admi ni st er i ng t he A H T A

. See N w . A i r l i nes , I nc. v. C ount yof K ent , M i ch. , 510 U
. S. 355, 366- 67 (1 9 9 4 ) (“ T h e S e c re tar yo f T r a n sp o rta tio n is c h a rg e d w ith ad m inist ering the f

ed era l avi a tio n law s, inclu d ing the A H T A

. ”). W e ther efor e r evi ew t he D O T ’ s i nt erpr et at i on of t hats t atut e us i ng5 t he fr amew or k es t abl i s hed i n C hevr on U
. S. A

. , I nc. v. N atur al R eso u rce s D ef

en se C o u n cil , Inc
. , 4 6 7 U
. S

. 8 3 7 (19 8 4 ): F irst, alw a y s, is th e q u e stio n w h e th e r C o n g re ss h a s d ire c tly s poken t o t he pr eci s e ques t i on ati s s ue. I f t he i nt entof C o n g re ss is c lea r . . . th e c o u rt
. . . m u st g iv e e f f e c t to th [ a t] u n a m b ig u o u slye x p re s s e d in ten t . .
. . [ I]f th e sta tu te is s i l entorambi guous w i t h r es pectt o the s peci fi c i s s ue, t he q u e stio n f

o r th e c o u rt is w h e th e r th e a g e n c y ’s a n sw e r is bas ed on a pe r m i s s i bl e cons t ruct i on of the s t atut e. I d. at842- 43. III
. I n 1 9 7 0 , Co n g r e s s e n a c t e d f e d e r a l h e a d t a x e s – u n i f o r m, p e r-p e rso n to lls – o n a irp lan e p a ss e n g e rs in o rd e r to ra ise m o n e yto hel p s t at es and muni ci pal i t i es devel op l ocal ai rpor t s . See A l oha A i r l i nes , I nc. v. D i r . of Tax ati o n , 4 64 U
. S. 7, 8- 9 ( 1983) ( di s cus s i ng fede r al eff

or t s t o as s i s tl ocal ai rpor t s )

. I n 1 9 72, t he S u p re m e C o u rt in E v a n sv ill e -V a n d e rb u rg h A irp o rt A u th o rity D i s t r i ctv. D el t a A i r l i nes , I nc. , hel d t hats t at es , t oo, m ayenac thead t axes on i nt er s t at e ai rt r avel

. 405 U
. S

. 707, 716- 17 ( 1972)

. T he C o u rt e x p lain e d : A t l east so l on g as t he t oll i s based on so m e f a ir a p p ro x im a tio n o f u se o r p riv ileg e f o r u se [ o f

a sta te f a c ili ty ], . . . an d is n e ith e r d isc rim in a to rya g a in st in ter sta te comm er ce nor exces s i ve i n compar i s on w i t h t he governm ent al b enefi tconfe r r ed, i tw i l l pas s cons t i tut i onal m u ster, ev en tho u g h so m e o ther fo rm u la m igh t r ef lect m o re exac t l yt he r el at i ve us e of the s t ate fac i l i t i es byi ndi vi dual users . Id

. Con g r e s s b e c a me c o n c e r n e d t h a tt h e Cou r t ’ s d e c i s i on opened t he fl oodgat es fora hodgepodge of l ocal head t axes a n d sim ilar ta x e s th a t co u ld c o m p lica te in ter sta te a ir tra v e l. S ee C o u n tyo f K en t, 5 1 0 U
. S

. at 36 3 (discu ssing C o n g ress’s per cept i on o f Evansvi l l e- V anderbur gh)

. So, i n 1973,6 C ongr es s enac t ed the A H T A , 49 U
. S. C

. § 1513 , w hi ch pr ohi bi t ed a w i de arr ayof s t at e hea d t axes an d ot her funct i onal l ys i m i l art ol l s . See i d. C ongr es s h as s i nce amended t he s t atut e seve r al t i m es , and i ti s now codi fi ed at § 40116. I mme d i a t e l yp r i o r t o r e c o d i f i c a t i o n a t§ 4 0 1 1 6 , t h e AH TA pr ovi ded: ( a) Pr ohi bi t i on; exempt i on. N o s t at e (or pol i t i cal s ubdi vi s i on t her eof .

. . ) s hal l l evyorcol l ecta t ax, fee , head char ge, or o ther c har ge, di r ect l yori ndi r ect l y , on per s ons t r avel i ng i n ai rcomm er ce oron t he ca r r i age of p ersons t r avel i ng i n ai rcomm er ce oron t he s al e of ai rt r ans por t at i on o r o n th e g ro s s re c e ip ts d e ri v e d th e re f ro m . . . . (b ) P e rm iss ib le S tate s tax e s an d f e e s. E x c e p t as p ro v id e d in su b se c tio n (d ) o f

th is s e c tio n [ p ro h ib iti n g c e rta in to lls d ee m ed to u n rea so n ab lyb u rde n interst ate c o m m erc e], not hi ng i n t hi s sect i on s hal l pr ohi bi ta St at e ( orpol i t i cal s ubdi vi s i on t her eof .

. . ) fr om t he l evyorcol l ect i on of t axes o th e r th a n th o se e n u m e ra ted in su b se c tio n (a ) o f th is sect i on , i ncludi ng propert yt axes, net i nco m e t axes, fr anchi s e t axes , and s al es or us e t axes on t he s al e of goods o r se rv ice s; a n d n o th in g in th is s e c tio n sh a ll p ro h ib it a S tate ( orpol i t i cal s ubdi vi s i on t her eof

. . . ) ow ni ng oroper at i ng an ai rportfrom l evy i ng or col l ect i ng reas on able r ental charges, l andi ng fee s , and others ervi ce c h arge s fr om ai r cr aft op erat ors fr om t he u se of airpo rtfaci l i t i es.

. . . . ( f) Fl i ghtt akeof

f orl andi ng r equi r ementforSt at e t axat i on. N o St at e . . . orpol i ti cal s ubdi vi s i on t her eof s hal l l evyor col l ectanyt ax on orw i t h r espectt o anyfl i ghtof a comm er ci al ai r cr aft or any act i vi t y or s ervi ce on boar d s uch a irc ra f t u n les s s u c h a irc ra f

t tak e s o f f o r la n d s in su c h S tate o r p o lit ica l su b d iv isio n a s p a rt o f su c h f lig h t. 4 9 U
. S

. C

. § 1 5 1 3 (19 9 4 ).7 C ongr es s r ecodi fi ed the A H T A and re l ocat ed i tt o § 40116 vi a Publ i c Law 103- 272. Sect i on 1 of thatl aw s etfor t h t he new tex t: ( b) Pr ohi bi t i ons . E xceptas pr ovi d ed in subse ct i on ( c) of this sect i on and s ect i on 40117 of thi s t i t l e, a St at e [or ] p o lit ica l su b d iv isio n o f

a S tate
. . . m a y n o t le v y o r c o llec t a t ax, fee , head c har ge, orot herchar ge on – ( 1) an i ndi vi dual t r avel i ng i n ai rcomm er ce; ( 2) the t r ans por t at i on of an in d iv id u a l trav e lin g in a ir c o m m e rc e ; (3 ) th e s a le o f a ir tra n sp o rta tio n ; o r (4 ) th e g ro ss re c e ip ts f ro m th a t air comm er ce ort r ans por t at i on. ( c) A i r cr aftt aki ng off orl andi ng in S ta t e. A St at e or pol i t i cal s ubdi vi s i on of a St at e m ay l evy orcol l ecta t ax on o r re late d to a f

lig h t o f a c o m m e rc ial a irc ra f

t o r a n a c tiv ity ors ervi ce on the ai r cr aftonl yi f the ai r cr aftt akes of f or l ands i n t he St at e orpol i ti ca l subdi vi s i on as par tof the f lig h t. (d) U nreasonab l e b u rdens and dis cri m i nati on against i nt er s t at e comm er ce.

. . . . (2 )(A ) A S tate , p o lit ica l su b d iv isio n o f a S tate , o r a u th o rity act i ng fora St at e or pol i t i cal s ubdi vi s i on m aynotdo anyof t he fol l ow i ng act s beca us e thos e ac t s unr eas onabl ybur den a n d d is c ri m in a te a g a in s t in te rs ta te c o m m e rc e : . . . ( e) O t heral l ow abl e t axes and cha r ges . E xceptas pr ovi ded i n s ub sec ti o n ( d) of thi s s ect i on, a St at e orpol i t i cal s ubdi vi s i on of a St at e m ay l evy orcol l ect– ( 1) t axes ( exce pt tho se e n u m era ted in su b s e cti o n (b) o f th is secti o n ), i ncludi ng propert yt axes, net i nco m e t axes, franchis e t axes, and s al es orus e t axes on t he sal e of goods ors ervi ces ; and ( 2) rea so n ab le ren tal ch arg es, l an d ing fe es, an d o ther servi ce char ges fr om ai r cr aftoper at or s forus i ng ai rpor tfac i l i t i es of an ai rpor tow ned oroper at ed byt hatSt at e ors ubdi vi s i on.F o r ea se o f re f e re n c e , th ro u g h o u t th is o p in io n w e sh a ll ca ll 1 a c o m m e rc ial f

lig h t to w h ich a tax re late s, th e tax ’s “ su b jec t f lig h t” (be ca u se th at fli g h t i s the su b ject of the tax ). 8 Pub. L
. N o. 103- 272, § 1( e) , 108 St at
. 745, 1 1 1 1 -12 ( 1994) (codi fi ed at § 40 11 6). L at er i n the r ecod i fi cat i on l aw , C on gress pr ovi ded: “Sect i on s 1 -4 of thi s A ctr es t at e, w i t houts ubs t ant i ve change , l aw s enac t ed be fo re Jul y1, 1993, t hatw er e r epl ace d by t hos e sec t i ons . T hos e sec t i ons m aynotbe cons t rued as m aki ng a s ubs t ant i ve cha nge i n t he l aw s r epl ace d. ” § 6( a) , 108 St at
. at1378. I n 1 9 9 6 , Con g r e s s p r o p o s e d a n a me n d m ent t o t h e AH TA t hatw oul d have r emoved s ubs ect i on ( b) ’ s r efe r ence t o s ubs ect i on ( c) as an “[ e] xcept [i on] ” t o t he ban on the fourenumer at ed c a teg o rie s o f

tax e s. H .R . R e p . N o . 1 0 4 -7 1 4 (I), a t 1 1 , re p rin ted in 1 9 9 6 U. S

. C. C. A. N. 3 6 5 8 , 3 6 5 8 ( p r o p o s i n g a me n d me n tt o H. R. 3 5 3 9 , 1 0 4 th C o n g . (1 9 9 6 )). T h e H o u se a n d S e n a te r e p o rts acc om pany i ng t hi s pr opos ed am endm entcal l ed the r efe r ence a “mi s t ake. ” H

. R
. R ep. N o. 104- 714( I ) , at 48- 49, r epr i nt ed i n 1996 U
. S

. C

. C

. A

. N
. 3 6 5 8 , 3 6 8 5 -86 ; S. R ep . N o . 1 0 4 -33 3 , at 28 (19 9 6 ). T hi s amendm entw as neverenac t ed. I V. D et erm i ni ng w heth er a t ax pas s es A H T A m us t erbegi ns w i t h § 4 0 1 1 6( b)

. T hatpr ovi s i on bans fourcat egor i es of l ocal t axes : t axes on “( 1) an i ndi vi dual t r av eli n g i n ai rcomm er ce; ( 2) t he tr ans por t at i on of an i ndi vi dual t r avel i ng i n ai rcomm er ce; ( 3) t he s al e of a i rt r ans por t at i on; [and] ( 4) t he gr os s r ece i pt s fr om t hat ai r c o m m erc e ort r ans por t at i on. ” The ban, how ever , oper at es “ [ e ]x c e p t as p ro v id e d in su b se c tio n (c ),” w h ich s ta te s th a t a m uni ci pal i t y “may l evy or col l ect a t ax on orr el at ed t o a fl i ghtof a c o m m e rc ial a irc ra f

t o r a n a c tiv ity o r se rv ice o n th e a irc ra f t o n ly i f t h e a i r c r a f

tt a k e s o f f o rl a n d s i n t h e [ t a x i n g l o c a l e ]

. ” 4 9 U. S

. C. § 4 0 1 1 6 (b), ( c). Suppose a muni ci pal i t yenac t s a t ax that fal l s w i t hi n one of t he fourcat egor i es enumer at ed i n s ubs ect i on ( b)

. Suppose t he t ax re late s to a c o m m e rc ial flig h t. A n d su p p o se th a t f lig h t ar riv e s in 1Foreas e of r efe r ence , t hr oughoutt hi s opi ni on w e s hal l s ay 2 th a t a f lig h t th a t ar riv e s in o r d e p a rts f ro m th e tax in g m u n icip a lity has a “gr ound nexus ” w i t h t he t axi ng m uni ci pal i t y( beca us e that fl i ghtm akes cont actw i t h – an d does nots i m pl yfl yover– t he taxin g m u n ici p ali ty ). T he pet i t i on al s o pr es ent s ques t i ons i m pl i cat i n g o t her 3 s ubs ect i ons of t he A H T A , ot herfede r al s t atut es , and i nt ernat i onal agr eement s . B ec ause w e r es ol ve the ca s e on s ubs ect i on ( c) groun ds, w e do no tansw er tho se quest i on s. Fori t s s ubs ect i o n (c) anal y s i s , t he D O T appea r s t o have 4 as s um ed (w i t hout deci di ng) t hat T i ni cum’s or di nance does i ndeed i m pos e a “ t ax” – a nd nota “f ee” or“cha r ge” – w i t hi n t he meani ng of the A H T A

. W e do the s ame. T i n i c u m c o n c e d e d a s m u c h w h e n i ta d m i t t e d t h a to n l y a 5 s avi ngs cl aus e coul d r es cue the t ax fr om condemnat i on. See A pp. 1 4 1 ( a r g u i n g t h a tt h e t a x i s “ p e r mi s s i b l e b e c a u s e t h e [ AHT A] pr ovi des a s peci fi c exc ept i on for[i t , ] ” notbeca us e i tavoi ds t he ban in th e f irst p lac e (c iti n g , in ter a lia, 4 9 U .S .C . § 4 0 1 1 6 (c )) (e m p h a sis ad d ed )) ( T inicu m su b m issi o n to D O T ). 9 ordepart s fr om t he t axi ng m uni ci pal i t y . D oes s ubs ect i on ( c) s ave 2 t he t ax fr om t he cat egor i cal ban? Thati s t he ques t i on pr es ent ed by T i ni cum’s pet i t i on forr evi ew , and w e ans w eri ti n t he nega t i ve. 3 A

. T he D O T hel d t hatt he t ax i m pos ed byT i ni cum’s or di nance vi ol at es the A H T A

. I thel d t hatt he t ax fa l l s w i t hi n s ubs ect i on 4 (b )’s c a teg o ric a l b a n , a n d th a t su b se c tio n (c ) d o e s n o t sa v e it. 5 T he D O T had bef

or e i tt w o compet i ng i nt erpr et at i ons of s ubs ect i on ( c)

. T he i ndus t r y gr oups r ead i tt o pr ovi de thata t ax on a s ubj ect fl i ghtt hatl acks a gr ound nexus t o t he t axi ng j ur i s di ct i on c a n n o t p a ss A H T A m u ste r, re g a rd les s o f w h e th e r th e tax f

a lls w i t hin the categori cal ban

. A ccordi ng to th e i nd ust rygroup s, s ubs ect i on ( c) s ay s not hi ng about t he fat e of a t ax o n a subj ect fl i ghtt hatdoes have s uch a nexus . T i ni cum r ead s ubs ect i on ( c) as10 a s a v i n g s c l a u s e p r o v i d i n g t h a t a t a x o n a s u b j e c t f l i g h t t h at has s uch a gr ound nexus al w ay s es cape s condemnat i on att he hands of th e c a teg o ric a l b a n (t h o u g h th e tax still, o f c o u rse , m u st n a v ig a te the A H T A ’s oth er p roh ib it ion s). T h e D O T h eld th at th e ind u stry gr oups ’ i nt erpr et at i on i s t he corr ectone. T he D O T bas ed i t s deci s i on pr i m ar i l yon t he r ecodi fi cat i on l aw . T hat law d ecl ar es t hat§ 40116 r eena ct ed § 1513 “w i t hout s ubs t ant i ve cha nge, ” and Ti ni cum concedes t hat§ 1513( f) – § 40116( c) ’ s pr edec es s or– w oul d not have s aved t he t ax. Sur el y , t he D O T re a so n e d , C o n g re ss c o u ld n o t h a v e in ten d e d th a t la n g u a g e to acc om pany a r adi cal r evi s i on of § 1513( f) , w hi ch i s pr eci s el yw hat r eadi ng s ubs ect i on ( c) as a s avi ngs cl aus e w oul d acc om pl i s h. T he D O T al so held that r eading sub se c t i on (c) as a savi ng s cl ause w oul d t oo eas i l y al l ow a m uni ci pal i t y t o ci r cumventt he ca t egor i cal ban: a muni ci pal i t ycoul d enac ta t ax bel ongi ng t o anyof the banned c at egor i es s o l ong as i t dr aft ed t he t ax t o i ncl ude a s ubj ect fli g h t hav ing a g rou n d n ex u s to the taxin g juri sd ict ion

– a f ea ture t hat ar i s e s n a tu r a l l yi n l o c a l t a x e s ( l i k e t h o s e c o v e r e d b yt h e b a n) o n a ir tra v e l. Th e DO T d e t e r mi n e d , h o wev e r , t h a t s u b s e c t i o n ( c ) , even w h e n n o t c o n stru e d a s a sa v in g s c lau se , d id n o t p e rf e c tlym e sh w ith t he r es tof t he A H T A

. I n par t i cul ar , i t pos i t ed t hat even w hen not c o n stru e d a s a sa v in g s c lau se , su b se c tio n (c ) w o u ld c o n f lict w ith s ubs ect i on ( b) ’ s openi ng cl aus e i ndi cat i ng t hats ubs ect i on ( c) i s an “ [ e ]x c e p t[ io n ] ” to th e c a teg o ric a l b a n . T h e D O T so lv e d th is pr obl em byhol di ng that i n l i ghtof the r ecodi fi cat i on l aw ’ s cl ear comm and, t he A H T A s houl d be r ead as i f t hatoffe ndi ng cl aus e of s ubs ect i on ( b) w er e del et ed. T inicu m fil ed a p eti ti o n fo r rev iew o f th e D O T ’s ord er, es s e n t i a l l yr e p r i s i n g t h e a r g u me n t s i tma d e d u r i n g t he admi ni s t r at i ve pr ocee di ngs . Fi r s t , T i ni cum ar gues t hat t he t extof s ubs ect i on ( c) and s ubs ect i on ( b) ’ s openi ng cl aus e indi cat e that s ubs ect i on ( c) s aves fr om t he cat egor i cal ban any t ax on a s ubj ect fl i ghtt hathas a gr ound nexus t o t he t axi ng loca le. Second, T i ni cum asse r t s t hatcons ul t i ng § 1513( f) t o s hed l i ghton t he m eani ng of § 40116( c) i s i nappr opr i at e, n o tw i t hs t andi ng t he r ecodi fi cat i on l aw , beca us e C ongr es s coul d have r eena ct ed the11 s t atut e’ s or i gi nal l anguage verbat i m , butdi d n o t. A nd t hi r d, T i ni cum cont ends t hatexami ni ng t he l egi s l at i ve hist o ryof the re jec ted a m e n d m e n t to re m o v e su b se c tio n (b )’s o p e n in g c lau se is notan appr opr i at e w ayt o det erm i ne the meani ng of the A H T A t hat C ongr es s actual l yenac t ed. B
. W e be gin our analy si s bydeterm i ning “w hetherC on gress has di r ect l ys poken t o t he pr eci s e ques t i on at i s s ue. I f t he i nt entof C o n g re ss is c lea r . . . [ w e ] . . . m u st g iv e e f f e c t to th [ a t] unambi guous l yexpr es s ed i ntent. ” C hevr on, 467 U
. S. at842- 43. T i ni cum cont ends t hatt he A H T A ’ s t extdi ct at es t hats ubs ect i on ( c) fu n cti o n s as a sav ing s clau se, an d m ak es tw o arg u m en ts i n su p p o rt of i t s cont ent i on. 1
. T i ni cum fi r s t ur ges us t o focus on t he t ext of subs ect i on ( c) i t s el f. T hatpr ovi s i on s t at es t hata muni ci pal i t y“may ” t ax a co m m er ci al fl i ghtonl yi f the fl i ghthas a gr ound nexus t o t he m un i ci pali t y . T i nicum argues t hat the w ord “m ay ” i nd i cat es a g ra nt of perm i ssi on t o d o w hatever actt he texti m m ediat e ly foll ow i ng t hat w ord descri bes. T herefore, T i nicum con cl ud es, s ubs ect i on ( c) gr ant s a muni ci p al i t yt he author i t yt o t ax a f l i ght w i th a gr ound nexus t o t he muni ci pal i t y , not w i t hs t andi ng s ubs ect i on ( b) ’ s cat egor i cal ban. W e d i s a g r e e wi t h Ti n i c u m’ s a r g u me n t
. Th e s t a tu t o r yt ext fol l ow i n g “ ma y ” i s “ l e v y . . . a t a x . . . r e l a t e d t o a f l i g ht of a comm er ci al ai r cr aft

. . . onl y i f t he ai r cr aft t akes off or l ands i n t he [ ta x in g lo c a le ].” § 4 0 1 1 6 (c ) (e m p h a s is a d d e d ). It is n o t “ le v y. . . a t ax . . . relat ed t o a fl i ghtof a c om m er ci al ai r cr aft

. . . i f the ai r cr aftt akes off orl ands i n t he [t axi ng l ocal e]

. ” Thi s di s t i nct i on m akes a di ffe r ence . See C arver v. L ehman, 558 F. 3d 869, 876 n. 12 ( 9t h C i r . 2009) ( expl ai ni ng t hat“[t ] he di s t i nct i on betw een ‘ i f’ and ‘o n ly if ,’ [ ] i s n o t a m e re q u ib b le o v e r v o c a b u la ry” ). T h e p h ra se “ o n ly if

” d e sc rib e s a n e c e ss a ryc o n d iti o n , n o t a s uffi ci ent co ndi t i on. See C al i forni a v. H odar i D
. , 499 U
. S. 621,12 627- 28 ( 1 9 9 1) ( expl ai ni ng t hat“onl yi f” de s cr i bes “a ne ces s ary , but n o t a suf ficien t, co n d it ion ”) ( em p h asis in ori g inal). A n ec essa ry condi t i on des cr i bes a pre r equi s i t e. See i d. ; A l den M gm t
. Ser vs . v. C hao, 532 F. 3d 578, 581 ( 7t h C i r . 2008)

. Forexampl e, m aki ng t he pl a y o f f s i s a n e c e s s a r yc o n d i t i o n f o rwi n n i n g t h e M a

j o rLe a g ue B as ebal l W or l d Ser i es beca us e a t eam cannotw i n t he W or l d Ser i es i f i t does notm ake the pl ay offs

. U s i ng t he “onl yi f” f or m : a t eam m a yw in th e W o rl d S e ri e s o n ly i f it m a k e s th e p la y o f

f s . B u t, a te am’s m eet i ng t he nec es s arycondi t i on of m aki ng t he pl ay offs d o e s n o t g u a ra n te e th a t th e te a m w ill w in th e W o rl d S e ri e s . T he w or d “i f” de s cr i bes a s uffi ci entcondi t i on. See A l den M g m t., 5 3 2 F .3 d a t 5 8 1 ; c f. H o d a ri D ., 4 9 9 U .S . a t 6 2 8 . A s uffi ci entcondi t i on i s a guar ant ee. See A l den M gm t
. , 532 F. 3d at 581. For exampl e, w i nni ng t he di vi s i on i s a s uffi ci entcondi t i on for m a k in g th e p layof

f s b e c a u se a tea m th a t w in s th e d iv isio n is ens ur ed a s poti n t he pl ay offs

. U s i ng t he “i f” f or m : a t eam m akes t he pl ay offs i f i tw i ns i t s di vi s i on. S u b sec ti o n (c), b y inv o k ing “o n ly if, ” de scribe s a n ec essa ry con dit i on . Itprovides that a t ax o n a subj ect f lig h t thatl acks a gr ound nexus t o t he t axi ng j ur i s di ct i on cannotpas s A H T A m us t er ( r egar dl es s of w hether t he t ax fal l s w i t hi n t he cat egor i cal ban) , but i ts ay s not hi ng aboutt he fat e of a t ax on a s ubj ect fl i ghtt hatdoes hav e such a nex us. T i ni cum’s cas es emp h as i zi ng t he perm i s s i ve natur e of the w or d “may ” s i m pl yar e i nappos i t e. T heydi s cus s s t atut es t hatdo notcont ai n t he “onl yi f” c onnect i ve or si m i l ar r es t r i ct i ve l anguage . See I n r e N ew H aven Proj ect s L t d. L i ab. C o. , 225 F. 3d 283, 286- 87 ( 2d C i r . 2000) ( i nt erpr et i ng 11 U
. S. C

. § 505( a) ( 1) , w hi ch pr ovi des t hat, su bj ectt o cert ai n l i m i t at i ons , “the courtm aydet erm i ne the am ou nt or l e ga l i t yof

a nyt a x” ) ; I nt ’ l Cabl e vi s i on , I nc . v. Syke s, 9 9 7 F .2 d 9 9 8 , 1 0 0 5 (2 d C ir . 1 9 9 3 ) ( in te rp re tin g 4 7 U .S .C . § 553( c) ( 2) , w hi ch pr ov ides t hat“the courtm ay ” gr anti nj unct i ve reli ef, at t or neyfee s , and damages agai ns ts om eone w ho has u n law fu ll yinterce p ted a ca b le co m m u n icati o n s serv ice). W e thus r ej ectT i ni cum’s ar gum entt hatt he p lai n t extof s ubs ect i on ( c) i ndi cat es t hati tfunct i ons as a s avi ngs cl aus e.T he r eas on s ubs ect i on (b) w oul d pr ovi de thata t ax not 6 f a lli n g w ith in a n e n u m e ra ted c a teg o ry is “n o t n e c e ss a rily p ro h ib ited ” – a s o p p o se d to “ n o t p ro h ib ited ” – is th a t w h ile s u b s e c t i o n ( b ) wou l d n o ti t s e l f p r o h i b i ts u c h a t a x , a n o t h e rAH TA pr ovi s i on, s uch as s ubs ect i on ( d) , coul d pr ohi bi t i t
. T her efor e, t he m os tone coul d gl ean f r om r eadi ng s ubs ect i on ( b) w oul d be that s u c h a ta x is “ n o t n e c e s s a ri ly p ro h ib ite d .” 13 2
. T i ni cum’s s econd t extual ar gum ent i s m or e appe al i ng t han i t s fi r s t , butul t i m at el yw e r ej ect t hi s one, as w el l

. T i ni cum ar gues t hats ubs ect i on ( b) ’ s openi ng cl aus e, bychar act er i zi ng s ubs ect i on ( c) a s an “[e ] xcept [i on] ” t o t he ca t egor i cal ban, i m pl i es t hat su b se c tio n (c ) m u st s a v e th e tax e s it d e sc rib e s (n a m e ly , tho se w ith s ubj ectfli g h ts h avi ng a gr ound nexus t o the t axi ng l ocal e)

. T he D O T conce des t hi s . T he D O T ar gues , how ever , t hatt he r es t r i ct i ve t extof s ubs ect i on ( c) and the r ecodi fi cat i on l aw ’ s s t at ementt hat Con g r e s s i n § 4 0 1 1 6 r e e n a c t e d t h e AH TA “wi t h o u ts u b s t a nt i ve change ” j us t i fyrea di ng t he s t atut e as i f s ubs ect i on ( b) ’ s openi ng cl aus e w er e del et ed. W e di s agr ee w i t h T i ni cum’s ar gum ent ( and bel i eve t hatt he D O T di d nothave t o m ake thatconce s s i on)

. T rue, s ubs ect i on ( c) i s an “[ e] xcept [i on] ” t o s ubs ect i on ( b) ’ s pr ohi bi t or yr egi m e. T hat d o e s n o t m e a n , h o w e v e r, th a t su b s e c tio n (c ) is a s a v in g s c la u s e . Subse ct i on ( b) ’ s “[e ] xcept as pr ovi ded i n s ubs ect i on ( c) ” l anguage m ak es se n se w h en su b sec ti o n (c ) i s co n stru ed as a n ec essa ry c o n d itio n . Suppose s ubs ect i on ( c) di d notexi s t
. Subse ct i on ( b) , t hen, w o u ld b e e q u iv a len t to th e c a teg o ric a l b a n sta n d in g a lo n e ; itw o u ld p roh ibito n lytax e s fa ll ing w ith in an en u m era ted c ateg o ry . In es s ence , s ubs ect i on ( b) w oul d pr ovi de: a t ax fa l l i ng w i t hi n an enumer at ed ca t egoryi s pr ohi bi t ed, and a t ax notfal l i ng w i t hi n an enumer at ed cat egory i s notnece s s ar i l ypr ohi bi t ed. N ow , cons i der 6 su b sec ti on ( b) as C ongr es s actual l ydr aft ed i t– w i t h i t s r efe r ence t o s ubs ect i on ( c)

. I t pr ovi des : a t ax fal l i ng w i t hi n an enumer at ed cat egoryi s pr ohi bi t ed, and a t ax notfal l i ng w i t hi n an enumer at edO urr eadi ng has t he vi r tue of pr es ervi ng eac h w or d of the 7 s ta tu te ’s te x t, w h ic h w e m u s t d o w h e n e v e r p o s s ib le . S e e , e .g ., U ni t ed St at es v. A t l

. R es ear ch C orp. , 551 U
. S. 128, 136- 37 ( 2007) ( r ej ect i ng i nt erpr et at i on t hatw oul d r enders t atut o ry p r ovi s i on a “d ea d let ter”). W e ther efor e need notaddr es s T i ni cum’s pr eempt i ve 8 cou n t e r a r g u me n t s f

o rwhywe s h o u l d n o tr e l yo n t h e l e g i s l a t i ve hi s t or y of a r ej ect ed am endment t o t he A H T A oron t he l anguage of the r ecod ifi cat i on l aw . W e do not e, how ever , t hatourr eadi ng of s ubs ect i on ( c) i s cons i s t entw i t h t he r ecodi fi cat i on l aw ’s s t at ementt hat§ 40116 does notdi ffe ri n s ubs t ance fr om § 1513. 14 cat egoryi s notnece s s ar i l ypr ohi bi t ed, exce pt t hat a t ax on a s ubj ect fl i ghtl acki ng a gr ou n d n exus i s pr ohi bi t ed eve n i f s uch t ax does not bel ong t o an enum er at ed cat egory . T he “[e] xceptas pr ovi ded b ysu b sec ti o n (c)” lan g u ag e m ea n ing fu ll yalt ers su b s e cti o n (b)’s p ro h ib ito ry re g im e . Subse ct i on ( c) , t hen, r ead a s a nec es s arycondi t i on, pr ovi des an ex ce p ti o n to the o p era ti o n o f su b sec ti o n (b)’s p roh ibit o ry reg im e. W e thu s reject T inicu m ’s arg u m en t th at su b sec ti o n (b)’s pl ai n l anguage r equi r es r eadi ng s ubs ect i on ( c) as a s avi ngs cl aus e. 7 * * * * * W e hol d t hatt he A H T A ’ s t ext unambi guous l ydemonstr at es t hat s ub sect i on (c) i s not a s avings cl ause fo r f lig h t-r el at ed taxes. U n d er th e a p p li ca b le C h ev ron fra m ew o rk, w e n ee d n o t go fu rth er. 8 V
. Fort he above r eas ons , w e w i l l deny T i ni cum’s pet i t i on for r evi ew of the D O T ’ s or derdecl ar i ng T i ni cum’s t ax i nval i d.