RE: Town of Gypsum Compliance Report and Action Plan Regarding Aviation Fuel Tax 

Dear Director: 

The Town of Gypsum, Colorado (the Town), is a Home Rule Municipality in the State of 

Colorado. The Town collects a general sales tax on the sale of tangible personal property, 

including a tax on the sale of aviation fuel at the Eagle County Regional Airport (the Airport). 

The Airport is located within the Town, but is owned and operated by Eagle County, Colorado 

(the County). As a result, 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. 

The purpose of this letter is to transmit an action plan (Action Plan) to comply with: (1) the 

Federal Aviation Administration (FAA) Policy and Procedures Concerning the U'ie (~fA ilport 

Revenue, 64 Fed. Reg. 7696 (Feb. 16, 1999) (Revenue Use Policy); (2) the FAA policy 

amendment: Policy and Procedures Concerning the Use of Airport Revenue; Proceeds from 

Taxes on Aviation Fuel, 79 Fed. Reg. 66,282 (Nov. 7. 2014) (Revenue Use Policy Amendment); 

and (3) FAA's 2015 guidance entitled Aviation Fuel Tax Grandfathering Action Plans (FAA 

Action Plan Guidance). 

In brief, based on consultation with the County and the County's outside aviation counsel and a 

review of federal law and FAA policies and guidance, the Town concludes the following: 

(1) The Town imposed a 2% sales tax on the sale of tangible personal property before 

December 30, 1987. This tax is grandfathered and therefore not subject to airport 

revenue use requirements. Part I of the Town's Action Plan provides the necessary 

explanation and documentation to support this grandfathered portion of the Town's sales 

tax. 

ADMINISTRATION (2) The Town has increased the sales tax since 1987. The cunent tax rate on the sale of 

Town Manager 

JeHshroll 

Asst. Town Manager 

Frances 5arela 

Town Clerk 

Danette Schlegel 

tangible personal property is 3%. The additional 1% sales tax imposed after December 

30, 1987 is not grandfathered and is subject to the Revenue Use Policy Amendment. Part 

II of the Town's Action Plan provides the details of the Town's plan for restructuring its 

general revenues in order to ensure that the aviation fuel tax revenue derived from the 

additional 1% of sales tax is appropriately dedicated to lawful aviation purposes 

permitted under federal law and FAA's Revenue Use Policy. 

FinanceoHicd.;'-hank you in advance for your review of the Town's Action Plan. Should you have any 

Mark Silverth'll}'l!lestions, please do not hesitate to contact me at 970.524.7514. 

Sales Tax Auditor 

L!:Jnn Trudeau 

pecial Pr~ects Coord1nator 

Krista DeHerrera 
Brian Treu, County Attorney, Eagle County 

Enclosures: 

TOWN OF GYPSUM ACTION PLAN (with Attachments) 

Attachment 1: 

Attachment 2: 

Attachment 3: 

Attachment 4: 

Attachment 5: 

Attachment 6: 

Attachment 7: 

Attachment 8: 

Attachment 9: 

Attachment 10: 

Attachment 11: 

Attachment 12: 

Attachment 13: 

Attachment 14: 

Town of Gypsum, Ordinance No. 1 (Series 1976) 

Town of Gypsum, Ordinance No. 9 (Series 1985) 

Town of Gypsum, Ordinance No. 10 (Series 1995) 

Town of Gypsum, Ordinance No. 15 (Series 2004) 

Town of Gypsum, Ordinance No. 5 (Series 20 13). 

Town of Gypsum, Ordinance No.8 (Series 2014) 

Gypsum Municipal Code, Chapter 3.08 (Sales and Use Tax) 

Town of Gypsum, Ordinance No. 17 (Series 1996) 

Town of Gypsum, Ordinance No.9 (Series 2010) 

Email correspondence from R. Fiertz (September 18, 20 15) 

Correspondence between Colorado Department of Revenue and Town of 

Gypsum (December 1976) 

DRAFT Town of Gypsum, Resolution 2015- 29 (Series 20 15) (scheduled 

for consideration on December 8, 20 15) 

Amended and Restated Intergovernmental Agreement for Cooperative 

Law Enforcement Services (2013) 

Eagle County Sheriffs Office Rep011 on Law Enforcement Activities 

(2014)