New Aviation Rule Exempts Pre-2014 Local Sales Taxes Near Major Hubs from Airport Spending Restrictions

If you live near a massive airport—think one that handled over 35 million passengers in 2021—you know the local impact is huge. Federal law usually requires that any revenue generated at an airport (like landing fees or concession rent) must be spent on the airport itself. This is called the "revenue use restriction," and it’s meant to keep airports functional and safe.

This new legislation carves out a very specific exception to that rule, but only for certain local sales taxes. It says that if a local government (like a city or county) had a general sales tax in place before December 9, 2014, that tax revenue is exempt from the federal requirement that it must go back to the airport. Essentially, it frees up that specific pot of local sales tax money for the local government to use on other things—like schools, roads, or police—instead of being locked into airport projects.

The Ultra-Specific Criteria for Tax Freedom

This isn't a free-for-all for every city with an airport. The bill is laser-focused, creating a benefit for only a handful of jurisdictions nationwide. To qualify for this sales tax freedom, a local government must check all four of these boxes, according to the amendment to Section 47133(b) of Title 49:

1. It must be a general sales tax. No special airport taxes allowed.
2. It must predate December 9, 2014. This is the critical cutoff date.
3. The local government cannot be the airport sponsor. Meaning the city or county collecting the tax doesn't own or operate the airport.
4. A massive airport must be located there. Specifically, a large hub airport that handled over 35,000,000 passenger boardings in calendar year 2021.

Why does this matter to the average person? If you live in one of these specific, qualifying jurisdictions, your local government suddenly gains flexibility. Before, if they collected a general sales tax that happened to cover airport-related activities, the FAA could argue that portion of the revenue needed to be reinvested in the airport. Now, for these specific, pre-2014 taxes, that restriction is lifted. The local government gets to decide where that money goes, which could mean more funding for community services that have nothing to do with aviation.

Less Federal Oversight, More Local Control

Another key change is the reduction in federal oversight. Currently, the FAA requires local governments to provide written assurance (under Section 47107(b)) that they will comply with the revenue use restrictions. This bill explicitly states that these assurance requirements do not apply to the specific local general sales taxes that meet the four criteria above.

For the FAA, this means a slight reduction in their ability to monitor how these particular local sales tax dollars are spent. For the local government, it means less paperwork and more autonomy. While this provides financial relief for the local municipality, it also means the general public needs to pay closer attention to their local budget process. If the city previously used that sales tax revenue for airport-related infrastructure—say, improving access roads or public transit connections to the terminals—they are now free to redirect those funds elsewhere. If they choose to fund a new park instead of maintaining the airport access road, you, the commuter, will feel that change.