90
84 Stat. 221.
72-Stat. 797; 84 Stat. 1502. 49 USC 1501.
PUBLIC LAW 93-44-JUNE 18, 1973
Permissible State taxes and fees.
Nonapplicability.
STAT.
thereof with respect to airport development project grant agreements entered into after September 28, 1971.". SEC. 6. The first sentence of section 12(a) of the Airport and Airway Development Act of 1970 (49 U.S.C. 1712(a)) is amended by striking out "two years" and inserting in lieu thereof "three years". SEC. 7. (a) Title X I of the Federal Aviation Act of 1958 is amended by adding at the end thereof the following new section: .,.
Prohibition exemption.
[87
"STATE
TAXATION or
AIR
COMMERCE
"SEC. 1113. (a) No State (or political subdivision thereof, including the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the District of Columbia, the territories or possessions of the United States or political agencies of two or more States) shall levy or collect a tax, fee, head charge, or other charge, directly or indirectly, on persons traveling in air commerce or on the carriage of persons traveling in air commerce or on the sale of air transportation or on the gross receipts derived therefrom; except that any State (or political subdivision thereof, including the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the District of Columbia, the territories or possessions of the United States or political agencies of two or more States) which levied a tax, fee, head charge, or other charge, directly or indirectly, on persons traveling in air commerce or on the carriage of persons traveling in air commerce or on the sale of air transportation or on the gross receipts derived therefrom prior to May 21, 1970, shall be exempt from the provisions of this subsection until December 31, 1973. "(b) Nothing in this section shall prohibit a State (or political subdivision thereof, including the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the District of Columbia, the territories or possessions of the United States or political agencies of two or more States) from the levy or collection of taxes other than those enumerated in subsection (a) of this section, including property taxes, net income taxes, franchise taxes, and sales or use taxes on the sale of goods or services; and nothing in this section shall prohibit a State (or political subdivision thereof, mcluding the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the District of Columbia, the territories or possessions of the United States or political agencies of two or more States) owning or operating an airport from levying or collecting reasonable rental charges, landing fees, and other service charges from aircraft operators for the use of airport facilities, "(c) I n the case of any airport operating authority which— " (1) has an outstanding obligation to repay a loan or loans of amounts borrowed and expended for airport improvements; "(2) is collecting without air carrier assistance, a head tax on passengers in air transportation for the use of its facilities; and "(3) has no authority to collect any other type of tax to repay such loan or loans, the provisions of subsection (a) shall not apply to such authority until December 31, 1973.". (b) That portion of the table of contents contained in the first section of such Act which appears under the center heading "TITLE
XI—MISCELLANEOUS"
is amended by adding at the end thereof the following: "Sec.
1113. State tax a t i o n of a i r eoniuieree.".
Approved June 18, 1973.
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