lec13 - MIT ICAT MIT ICAT 16.72 ATC Funding and User Fees R...

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Unformatted text preview: MIT ICAT MIT ICAT 16.72 ATC Funding and User Fees R. John Hansman Material from FAA ATO, Jerry Thompson, Philippe Bonnefoy MIT ICAT MIT ICAT FAA Accounts y Operations y Airport Improvement Program (AIP) y Facilities & Equipment (F&E) y Research Engineering & Development (R&D) MIT ICAT MIT ICAT MIT ICAT MIT ICAT ATO Costs By Facility Level 2004 Level 1 - Facility 51% Level 2 - Service Unit (Mostly F&E) 31% Level 3 - ATO 11% Level 4 - FAA 7% y Level 1 - ATC Facility ¡ Operations y Level 2 - Contract ¡ Equipment Acquisition ¡ Contract Towers ¡ Contract Weather ¡ DUAT y Level 3 - ATO ¡ ATCSCC ¡ Operations Control ¡ Charting ¡ RE&D y Level 4 - FAA ¡ HQ FAA-ATO ¡ Regional FAA-ATO MIT ICAT MIT ICAT MIT ICAT MIT ICAT Budget Justification MIT ICAT MIT ICAT FAA Accounts y Operations y Airport Improvement Program (AIP) y Facilities & Equipment (F&E) y Research Engineering & Development (R&D) MIT ICAT MIT ICAT General Fund Contribution AATF Funding Structure Operations F&E AIP R&D Taxes/User Fees Interest General Fund MIT ICAT MIT ICAT Airport and Airways “Trust Fund” (AATF) y Statutory formula requires that Trust Fund revenues first be used to fully fund AIP, F&E and R&D at authorized levels before being used to fund Operations. y The formula requires that the total amount appropriated from the Trust Fund each year must equal the FAA forecast revenue (tax receipts and interest) to be deposited into the Trust Fund that year. y Forecasts have been overstated in most years hence the amount taken from the trust fund exceeds the income and the trust fund balance is decreasing. y A more reliable method may be basing the level on the actual Trust Fund revenue in the previous year. MIT ICAT MIT ICAT MIT ICAT MIT ICAT General Fund Contribution AATF Funding Structure Operations F&E AIP R&D Taxes/User Fees Interest General Fund MIT ICAT MIT ICAT Aviation Taxes Comment Tax Rate Domestic Passenger Ad valorem tax 7.5% of ticket price (10/1/99 through 9/30/2007) Ticket Tax Domestic Flight "Domestic Segment" = a flight leg Rate is indexed by the Consumer Price Index starting 1/1/02 Segment Tax consisting of one takeoff and one $3.00 per passenger per segment during calendar year (CY) 2003 landing by a flight $3.10 per passenger per segment during CY2004. $3.20 per passenger per segment during CY2005. $3.30 per passenger per segment during CY2006 Passenger Ticket Tax Assessed on tickets on flights that 7.5% of ticket price (same as passenger ticket tax) for Rural Airports begin/end at a rural airport. Flight segment fee does not apply. Rural airport: <100K enplanements during 2nd preceding CY, and either 1) not located within 75 miles of another airport with 100K+ enplanements, 2) is receiving essential air service subsides, or 3) is not connected by paved roads to another airport International Arrival & Head tax assessed on pax arriving or Rate is indexed by the Consumer Price Index starting 1/1/99 Departure Tax departing for foreign destinations (& Rate during CY2003 = $13.40Rate during CY2003 = $13....
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This note was uploaded on 10/20/2011 for the course AERO 16.72 taught by Professor Hansman during the Fall '06 term at MIT.

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lec13 - MIT ICAT MIT ICAT 16.72 ATC Funding and User Fees R...

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