The Airport and Airway Development Act of 1970 ( Pub.L. 91-258) was a

United States federal law The law of the United States comprises many levels of codified and uncodified forms of law, of which the most important is the nation's Constitution, which prescribes the foundation of the federal government of the United States, as well as ...

passed during the 91st Congress, and signed into law by

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Richard Nixon Richard Milhous Nixon (January 9, 1913April 22, 1994) was the 37th president of the United States, serving from 1969 to 1974. A member of the Republican Party, he previously served as a representative and senator from California and was ...

in conjunction with the Airport and Airway Revenue Act on May 21, 1970. The act was meant to fill funding gaps in the airport and airway system, which had become inadequate due to the rapid growth of aviation. The legislation was estimated to generate greater than $11 billion in funds, Together, the two acts created and planned funding for the

Airport and Airway Trust Fund The Airport and Airway Trust Fund (AATF) provides funding for the federal commitment to the aviation system of the United States of America through several aviation-related excise taxes. It was established on the books of the United States Departm ...

(Airport Trust Fund), which was initiated on July 1, 1970. The new Airport Trust Fund was modeled on the Federal Highway Trust Fund, and would be fulfilled by new

aviation Aviation includes the activities surrounding mechanical flight and the aircraft industry. ''Aircraft'' includes fixed-wing and rotary-wing types, morphable wings, wing-less lifting bodies, as well as lighter-than-air craft such as hot a ...

-related

excise taxes file:Lincoln Beer Stamp 1871.JPG, upright=1.2, 1871 U.S. Revenue stamp for 1/6 barrel of beer. Brewers would receive the stamp sheets, cut them into individual stamps, cancel them, and paste them over the Bunghole, bung of the beer barrel so when ...

. These new taxes, including a tax on aviation fuels, a tax placed on tickets sold to passengers on domestic and international flights, a tax on

waybill A waybill ( UIC) is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it will show the names of the consignor and consignee, the point of origin of the consignment, its d ...

s, and a new tax on

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, were expected to provide the anticipated $11 billion trust fund. These taxes would feed into the Airport Trust Fund in order to pay for airport development, as well as "acquiring, establishing, and improving air navigational facilities." The fund was authorized to pay for these improvements using $280-million-a-year grants over a five-year period. It is believed that this

user fee A user fee is a fee, tax, or impost payment paid to a facility owner or operator by a facility user as a necessary condition for using the facility. People pay user fees for the use of many public services and facilities. At the federal level in ...

system would be advantageous compared to a flat tax, because it provided a predictable level of funding, allowed for the trust to plan far ahead, and assured fees meant for aviation related improvements would not be divided amongst unrelated fields. Six years after the act became law, the Act was augmented by the Airport and Airway Development Act Amendments of 1976. The 1976 legislation was signed into law by President Gerald Ford in order to "make possible the continuing modernization of our airways, airports, and related facilities in communities throughout the 50 States." Ford stated these amendments would combat inflation and referred to the system as creating a "'pay-as-you-fly' program".

References

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External links

*Murphy, Robert P. (1999-02-19)
Whether the Airport and Airway Trust Fund was created solely to finance aviation infrastructure
(PDF). ''Letter to The Honorable Frank R. Wolf Chairman, Subcommittee on Transportation and Related Agencies'' United States General Accounting Office. Retrieved July 2007. 1970 in law 1970 in aviation Aviation in the United States United States Department of the Treasury United States Department of Transportation United States federal transportation legislation

See also

References

External links