Resolution 28 (Series 2015)

Expressing the Commitment of the Town to Comply with Federal La w and FAA Policies Regarding the Use of Proceeds from Taxes on Aviation Fuel

WHEREAS, the Town of Gypsum, Colo rado, is a Home Rule Municipal ity in the State of Colorado; and

WHEREAS, the Town has the autho rity to impose tax on the sale o f tangible personal property at

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

WHEREAS, on February 2, 1976, the Town approved and adopted Ord inance 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 ta x 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 amendment s to the general sales tax including: Ordinance No. 9 (Series 1985); Ordinance No. 10 (Ser ies 1995); Ordinance No. 15 (Series 2004); Ordin ance No. 5 (Series 2013); and Ordinance No. 8 (Series 2014); and

WHEREAS, the Town is subject to t he requirements at 49 U.S.C. 4 7133, 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 loca l taxes on aviation fuel from mu ltiple 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 t hat collect taxes on aviation fuel to submit an action plan by December 8, 2015 d emonstrating compliance with the policy and applicable federal law; and

WHEREAS, the Town consulted with Eagle County Colorado, which i s 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 reg arding 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 T own pays for law enforcement

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

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

Section 2. The Town has prepared and submitted to FAA an actio n 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 fo r ensuring that any revenue fro m the tax on aviation fuel that exceeds the grandfathered po rtion is dedicated to, or off-set by, lawfu l aviation purposes permitted under federal law and FAA’s Revenue Use Policy.

Section 2. The Town acknowledges that any subsequent revision t o the general sales tax, currently codified at Chapter 3.08 of the Municipal Code may affect the g randfathered status of the initial

2% tax.

Section 3. The Town affirms that it will advise FAA of any sub sequent 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