Excise taxes and the airport and airway trust fund, 1970-2002

Statistics of Income Bulletin, Winter, 2003 by Eric Henry

Passenger Facility Charge (PFC).--A fee charged by individual airports, usually those that are classified as a medium or large hub, to raise more revenue than they would by just using the Airport Improvement Program (AIP) grants. For those airports that do charge a PFC, a portion, up to hall, of their (AIP) entitlement issued by the FAA is denied. Monies from this penalty fee are then included in a fund for nonhub and general aviation airports.

Receipts.--Aviation-related excise taxes collected before subtracting refunds.

Rural airports--An airport is a rural airport for a calendar year if it satisfies both of the following requirements.

1) Fewer than 100,000 commercial passengers departed from the airport during the second preceding calendar year.

2) Either of the following statements is true.

a) The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year.

b) The airport was receiving essential air service subsidies as of August 5, 1997.