Resolution 28 

(Series 2015) 

Expressing the Commitment of the Town to Comply with Federal Law and FAA Policies 

Regarding the Use of Proceeds from Taxes on Aviation Fuel 

WHEREAS, the Town of Gypsum, Colorado, is a Home Rule Municipality in the State of 

Colorado; and 

WHEREAS, the Town has the authority to impose tax on the sale of tangible personal property at 

retail under Article XX of the Colorado Constitution and the Town’s Home Rule Charter; and 

WHEREAS, on February 2, 1976, the Town approved and adopted Ordinance No. 1 (Series 1976) 

to establish a 2% general sales tax on the privilege of selling tangible personal property at retail 

upon every retailer in the Town; and 

WHEREAS, the 2% general sales tax went into effect on January 1, 1977, after it was approved 

by a majority of the electors of the Town; and 

WHEREAS, the Town has approved and adopted subsequent amendments to the general sales tax 

including: Ordinance No. 9 (Series 1985); Ordinance No. 10 (Series 1995); Ordinance No. 15 

(Series 2004); Ordinance No. 5 (Series 2013); and Ordinance No. 8 (Series 2014); and 

WHEREAS, the Town is subject to the requirements at 49 U.S.C. 47133, that local taxes on 

aviation fuel (except taxes in effect on December 30, 1987) may not be expended for any purposes 

other than a lawful aviation purpose; and 

WHEREAS, the Town collects local taxes on aviation fuel from multiple vendors operating at the 

Eagle County Regional Airport; and 

WHEREAS, the Federal Aviation Administration (FAA) published a final policy amendment 

entitled Policy and Procedures Concerning the Use of Airport Revenue; Proceeds From Taxes on 

Aviation Fuel on November 7, 2014, in which FAA directed local governments that collect taxes 

on aviation fuel to submit an action plan by December 8, 2015 demonstrating compliance with the 

policy and applicable federal law; and 

WHEREAS, the Town consulted with Eagle County Colorado, which is the sponsor of the Eagle 

County Regional Airport, and with the County’s outside aviation counsel to understand the Town’s 

obligations under the FAA policy and applicable federal law regarding the use of proceeds from 

local taxes on aviation fuel; and 

WHEREAS, the Town is a party to an Intergovernmental Agreement for Cooperative Law 

Enforcement Services with Eagle County, pursuant to which the Town pays for law enforcement 

services at facilities throughout the Town, including services directly benefitting the airport; and 

NOW THEREFORE, be it resolved by the Town of Gypsum Colorado that: 
Section 1. The Town of Gypsum acknowledges its obligations under 49 U.S.C. 47133. 

Section 2. The Town has prepared and submitted to FAA an action plan submit providing written 

justification why the Town’s 2% tax on aviation fuel qualifies for grandfathered status. The action 

plan also details the process for ensuring that any revenue from the tax on aviation fuel that exceeds 

the grandfathered portion is dedicated to, or off-set by, lawful aviation purposes permitted under 

federal law and FAA’s Revenue Use Policy. 

Section 2. The Town acknowledges that any subsequent revision to the general sales tax, currently 

codified at Chapter 3.08 of the Municipal Code may affect the grandfathered status of the initial 

2% tax. 

Section 3. The Town affirms that it will advise FAA of any subsequent amendments that could 

affect the grandfathered status of the initial 2% sales tax and will provide appropriate 

documentation if necessary. 

 ___________________________ 

 Mayor Steve Carver 

Attest: 

____________________________ 

Danette Schlegel, CMC 

Town Clerk