Agri-Center Of The World 

December 3, 2015 

Randall S. Fiertz 

Director, Airport Compliance and Management Analysis 

Federal Aviation Administration 

800 Independence Ave., SW 

Washington, DC 20591 

Re: The State of California's Action Plan in Response to FAA Policy Change 

79 FR 66282-01; Docket FAA-2013-0988 

Dear Mr. Fiertz: 

PROPERTY SERVICES DIVISION 

The City of Tulare (City) responds to the FAA's amendment of its Policy and Procedures 

Concerning the Use of Airport Revenue with the following action plan. The FAA interprets 

restrictions on the use of "local taxes on aviation-fuel (except taxes in effect on December 30, 

1987)" in 49 U.S.C. § 47107(b) and 49 U.S. C.§ 47133(a) to include City general sales tax 

revenue derived from aviation fuel in addition to local. ~viation fuel excise taxes. The policy 

change says that taxing authorities should submit an action plan by December 8, 2015 providing 

for the expenditure of such general sales tax revenues derived from aviation fuel on airport capital 

and operating costs, and implement the action plan by December 8, 2017. 

The City does not segregate general sales tax revenue derived from aviation and jet fuel from 

other taxable sales. A reliable estimate of the portion of general sales tax revenues derived from 

aviation fuel is determined by the reporting of fuel sales from a sole source fuel provider 

and concessionaire for the City. In addition, any estimate is subject to volatility based on the 

fluctuating price of aviation fuel and other calculations. The most recent rough estimate of City 

general sales tax revenues potentially affected by the FAA's policy change is approximately 

$2,500 annually based on current fuel prices. 

The City enacted a 0.5% rate use tax on April 1, 2006 by approving Measure I, an ordinance adding 

Chapter 5. 78 to Title 5 of the Tulare Municipal Code. Californi~.- Reyenue and Taxation Code Section 

7285.9 authorizes the City to levy or increase transactions and use tax (i.e. "sales tax") at a. rate of .25 

percent or multiple thereof, for the general purposes of the city if the ordinance proposing the tax is 

approved by a majority of the qualified voters of the city voting in an election on that issue 

3989 South "K" Street • Tulare, Ca.lifornia. 93274 • 669.685.4567 • Fa.x 559.684.4339 • www.c1.tulare.ca..us 

Al\1 EQUAL OPPOR1UNITY EMPLOYER 
The revenues from this tax are not designated for any specific purpose. The revenues may be 

used for general city functions, such as police protection including anti-gang programs, fire 

suppression and paramedic services, street and pothole repair, city park maintenance and 

repairs, the library, recreation, tree trimming, code enforcement and other City services. 

The sales tax increase will be subject to certain conditions. The revenues and expenditures shall 

be internally audited on an annual basis, and if requested, the findings of the auditor shall be reviewed 

by the City Council and made available to the public. The City Council may, by resolution and after 

public notice and a public hearing, reduce said tax to one-quarter of a cent (.25 percent). 

The City devotes significant resources in support of aviation programs and capital and operating costs 

for the Tulare Municipal Airport, Mefford Field (KTLR) which is a small municipal general aviation 

airport. City expenditures on airport capital and operating costs include, but are not limited to: 

• Fire protection services 

• Public safety services 

• Emergency response services 

• Infrastructure, including water, electricity, and sewer 

• Environmental mitigation 

• Airport administration 

• Airport grounds maintenance 

• Grant matching funds related to aviation activities 

The City believes these City expenditures exceed the above estimate of City general sales tax 

revenues derived from aviation fuel and the City is in compliance with federal law. 

Over the next two years, the City will continue to work with taxing authorities, and other entities to 

coordinate the collection of data to refine (1) estimates of City general sales tax revenues derived from 

aviation fuel and (2) estimates of City expenditures on and investment in the Tulare Municipal Airport, 

to confirm the City complies with federal law. 

If, contrary to current estimates, the City determines that its expenditures on airport capital and 

operating costs do not exceed general sales tax revenues derived from aviation fuel, it will act 

accordingly, including considering legislative solutions, to comply with applicable federal law. 

Sincerely, 

Steve Bonville 

Airport Manager 

Property Services Manager 

~'-L9r~~14'---- Darlene Thompson 

Finance Director