January 8, 2016 

Byron K. Huffman 

Acting Director 

Office of Airport Compliance and 

Management Analysis 

Federal Aviation Administration 

800 Independence A venue, SW 

Washington, D.C. 20591 

Dear Mr. Huffman: 

EDDlE BAZA CALVO 

Go1•ernor 

RAY TENORIO 

Lieutenam Gol'l!mor 

Thank you for giving the Government of Guam the additional time to respond to your 

letter of November 24, 2015, regarding its compliance with the Federal Aviation 

Administration's Policy and Procedures Concerning the Use of Airport Revenue,· Proceeds from 

Taxes on Aviation Fuel (79 Fed.Reg. 6628) (Amendment). 

In Guam, local laws mandating the levy of excise taxes on aviation fuel have been in 

effect since before December 30, 1987. Accordingly, as provided for in the FAA's policy, the 

taxes qualify for grandfather status and may used for other than airport purposes because they are 

not subject to the policy's revenue-use requirements. 

Specifically, aviation fuel has been continually taxed since 1953 when the Business 

Privilege Tax Law was enacted by Guam Public Law Z:-43. Under Subchapter D of Public Law 

2-43, an excise tax was broadly assessed against "all liquid fuel manufactured or produced and 

sold, stpred or used by him in Guam, or imported or acquired from persons not taxable hereunder 

and sold, stored, or used by him in Guam .. . " 1 The 1953 levy expressly contemplated that 

assessments would be made on aviation and marine fuel.2 . 

II 

II 

1 PUB.L. 2-43 at §19,570 (emphasis added). 

2 See e.g., PUB.L. 2-43 at § 19,572.02 providing for refund or drawback of 2 cents per gallon on rates 

assessed for "liquid fuel purchased solely for marine or aviation purposes and not-. used on the public 

roads on Guam ... " (emphasis added). 

P.O. Box 2950 • 1-lagatna, Guam 96932 

Tel: (671) 472-8931 • fa'<: (671) 477-4826 • gO\cmor.guam.gO\ • calcndar.guam.gO\ 

Eddie Baza Calvo Oeddlebazacalvo @governorcalvo ~ governorofguam 
Over the years, the Guam liquid fuel tax laws have been amended in order to clarify the 

inclusion of particular types of fuels and to provide for certain user exemptions. None of the 

amendments, however, did anything to repeal or otherwise substantively change the requirement 

of taxation on liquid fuel used for commercial aviation purposes. 

Thank you again for the opportunity to address the FAA's policy on this subject. If you 

have any questions or concerns, please contact John P. Camacho, Director of Revenue and 

Taxation at (671) 635-1 817. 

Senseramente, 

cc: Bernadette F. Artero, ChiefFiscal Advisor 

John P. Camacho, Director- Dept. of Revenue and Taxation 

Charles H. Ada II, Executive Manager- Guam International Airport Authority 

P.O. Box 2950 • llagatna, Guam 96911 

Tel: (671) 472-8931 • Fax: (671) 477-4826 • gmcmor.guam.go\ • calcndar.guam.gov 

Edd•e Baza Calvo tledd•ebazacalvo Ogovernorcalvo ~ governorofguam 
u.s. Department 

of Transportation 

Federal Aviation 

Administration 

November 24,2015 

The Honorable Eddie Baza Calvo 

Governor of Guam 

Executive Chamber 

P.O. Box 2950 

Agana, Guam 96932 

Dear Governor: 

Office of Airport Compliance 

and Management Analysis 

800 lndependenoe Ave .• SW. 

Washington, DC 20591 

-A.B. 

~ 

WON PAT 

INTffiAATIONALA!RPMTAuntORITYGUAU 

C 10 2015 

TIME llM REC;DBY~ ~ r 7£?' 

On November 7, 2014, Federal Aviation Administration (FAA) adopted FAA Policy and 

Procedures Concerning the Use of Airport Revenue; Proceeds from Taxes on Aviation Fuel, 

(79 Fed. Reg. 6628) (Amendment). The Amendment clarifies FAA's Policy and Procedures 

Concerning the Use of Airport Revenue (64 Fed. Reg. 7696, February 16, 1999) (Revenue 

Use Policy) requirement that state or local taxes on aviation fuel (except taxes in effect on 

December 30, 1987) are considered to be airport revenue subject to the revenue-use 

requirement. State and local taxes in effect on December 30, 1987 may qualify for 

grandfather status and be used for other than airport pwposes. 

This Amendment is being applied prospectively. Any states and local governments not 

currently in compliance "Win be provtded Wlth' a reasonable transition time (not to exceed 3 

years from the effective date of December 8, 2014) to come into compliance With the FAA's 

Policy and Procedures Concermng the Use of Auport Revenue (64 FR 7696, February 16, 

1999) (Revenue Use Policy). The FAA understood that changes to bring state and local taxes 

into compliance may r~uire state and local legislation, and thus afford state and local 

governments the opportunity to develop an Action Plan to detail the methodology for 

administering aviation fuel taxes in accordance with the Amendment. 

State and local govenunents will be expected to submit an A2ti:Q!l~ta-EAA-outlining-a 

strategic plan to come into compliance with the amendment by December 8. 2015. The 

Action Plan should identify (1) the process to am~nd any non-compliant laws, and restructure 

general revenues to adapt to the dedication of aviation fuel tax revenue to airports and or 

State aviation programs; (2) a commitment to undertake the legislative process; and (3) the 

timeframe for action within the three year transition period for completion by December 8, 

2017. 

The first deadline of submitting an Action Plan by December 8 is approaching rapidly. Many 

state and local jurisdictions feel they are compliant with the Amendment. It would be 

prudent for the state and local governments to contac~ FAA Office of Airport Compliance 

and Managelllent Analysis with any questions or concerns. The FAA has posted the 

-
. ~ 

Amendment and other guidance on several issues to the Aviation Fuel Tax Docket (Docket 

10: FAA-2013-0988). [See 

http://www .regulations. gov/#! docketBrowser;rpp=25 ;po=25 ;D= FAA-20 13-0988] 

The Action Plan should be submitted to: 

Federal Aviation Administration 

Attention: Director: Oft1ce of Airport Compliance 

and Management Analysis 

800 Independence A venue, SW 

Washington. DC 20591 

2 

The FAA is available to answer questions and to provide assistance to state and local 

governments working to become compliant with the Amendment to the Revenue Use Policy. 

If you or your staffhave any questions, please contact Jim Brovm at (202) 267-5879. 

Sincerely, 

.' 

.' I I : I . 

:;;: ·~ ~..) ... , ~~~ft; n ~-.: . lltrfti\Hfnt ,\-.:l ir:; Director 

·office of Airport Ccm1pliance 

and Management Analysis