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FAA Limits Use of States' Aviation Fuel Taxes
Stateline: Certain states and localities with airports could lose about $200 million annually unless they comply with a 2014 Federal Aviation Administration ruling requiring them to spend revenues from jet fuel taxes only on air travel-related expenses.
At issue is a new interpretation of the Airport and Airway Improvement Act. According to the FAA, the 1982 law was supposed to ensure that taxes levied on airline fuel are spent to upgrade airports, help build runways and improve facilities for air travelers.
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