Town of **G~**Se!;t

1'J1

50 Lundgren 5oulevard

•PO 5ox 170

• G!:Jpsum, CO 81671 Telephone (970) 52+-751+

•Facsimile (970) 52+-7522

• www.townofwpsum.com December

7, 2015 Director Office of Airport Compliance and Management Analysis Federal Aviation Administration 800 Independence

A venue,S W Washington D.C., 20591 RE: Town of Gypsum Compliance Report and Action Plan Regarding Aviation Fuel Tax Dear Director: The Town of Gypsum, Colorado (the Town),

is aHome Rule Municipality

in the State of Colorado. The Town collects

a general sales taxonthe sale of tangible personal property, including

ataxonthe sale of aviation fuel atthe 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 tothe requirements

at49 U.S.C.

§ 47133, that local taxesonaviation fuel (except taxesin effect onDecember 30, 1987) maynotbe expended for any purposesother than
alawful aviation purpose. The purposeof this letter is totransmit anaction 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 onAviation 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 onconsultation 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

a2% sales taxonthe sale of tangible personal property before December
30
,1987

.This taxis grandfathered and therefore not subject to airport revenueuse requirements. Part

I of the Town's Action Plan provides the necessary explanation and documentation

to supportthis grandfathered portion of the Town

' ssales tax. ADMINISTRATION

(2) The Town has increased the sales taxsince 1987. The cunenttaxrateonthe 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 tothe 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 toensurethat the aviation fuel taxrevenuederived from the additional 1% of sales taxis appropriately dedicated
tolawful aviation purposes permitted under federal law and FAA's Revenue Use Policy

. FinanceoHicd.;'-hank
youin advance for yourreview of the Town's Action Plan

.Should youhave any Mark S i lverth'll}'l!lestions, please do nothesitate tocontactmeat970

.524.7514

. Sales Tax Auditor L!:Jnn Trudeau pecial **Pr~ects**Coord1nator Krista DeHerreraSincerely

, Mayor Steve Carver cc: Greg Phillips, Director of Aviation, Eagle County Regional Airport 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) (sch eduled for consideration
onDecember

8, 20 15) Amended and Restated Intergovernmental Agreement for Cooperative Law Enforcement Services (2013) Eagle County Sheriffs Office Rep011 onLaw Enforcement Activities (2014)