Agri-Center Of The Wor ld

December 3, 20 1 5 Randall S . Fiertz Director, Airport Compliance and Management Analysis Federal Aviation Administration 800 Independence Ave. , SW Washington , DC 20591 

### Re: The State ofCalifornia'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 i n effect on December 30 , 1987)" in 49 U . S .C. § 47107(b) and 49 U . S .C .§ 47133(a) to i nclude City general sales tax revenue derived from aviati on fuel in addition to local. **~viation** fuel excise taxes . The pol icy 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 fue l from other taxable sales . A reliable estimate of the portion of general sales tax revenues derived from avi ation fuel is det e rmined 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 . Th e C ity enacted a 0. 5% rate use tax on Apri l 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 EQUALOPPOR1UNITY EMPLOYERThe 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 aud ited 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 s ignificant 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 expend itures on airport capital and operating costs include , but are not limited to: • Fire protecti on services • Publ ic safety services • Emergency response services • Infrastructure , including water, electricity, and sewer • Environmental mitigation • Airport admin istr ation • Airport grounds maintenance • Grant match ing funds related to aviation activities The City bel ieves these City expenditures exceed the above estimate of City general sales tax revenues derived f rom 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 T ulare Municipal Airport , to confirm the City comp lies 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 fro m 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