US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
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[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
  January 7, 2003 and December 19, 2003]
[CITE: 49USC40116]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                     PART A--AIR COMMERCE AND SAFETY
 
                           subpart i--general
 
                     CHAPTER 401--GENERAL PROVISIONS
 
Sec. 40116. State taxation

    (a) Definition.--In this section, ``State'' includes the District of 
Columbia, a territory or possession of the United States, and a 
political authority of at least 2 States.
    (b) Prohibitions.--Except as provided in subsection (c) of this 
section and section 40117 of this title, a State, a political 
subdivision of a State, and any person that has purchased or leased an 
airport under section 47134 of this title may not levy or collect a tax, 
fee, head charge, or other charge on--
        (1) an individual traveling in air commerce;
        (2) the transportation of an individual traveling in air 
    commerce;
        (3) the sale of air transportation; or
        (4) the gross receipts from that air commerce or transportation.

    (c) Aircraft Taking Off or Landing in State.--A State or political 
subdivision of a State may levy or collect a tax on or related to a 
flight of a commercial aircraft or an activity or service on the 
aircraft only if the aircraft takes off or lands in the State or 
political subdivision as part of the flight.
    (d) Unreasonable Burdens and Discrimination Against Interstate 
Commerce.--(1) In this subsection--
        (A) ``air carrier transportation property'' means property (as 
    defined by the Secretary of Transportation) that an air carrier 
    providing air transportation owns or uses.
        (B) ``assessment'' means valuation for a property tax levied by 
    a taxing district.
        (C) ``assessment jurisdiction'' means a geographical area in a 
    State used in determining the assessed value of property for ad 
    valorem taxation.
        (D) ``commercial and industrial property'' means property 
    (except transportation property and land used primarily for 
    agriculture or timber growing) devoted to a commercial or industrial 
    use and subject to a property tax levy.

    (2)(A) A State, political subdivision of a State, or authority 
acting for a State or political subdivision may not do any of the 
following acts because those acts unreasonably burden and discriminate 
against interstate commerce:
        (i) assess air carrier transportation property at a value that 
    has a higher ratio to the true market value of the property than the 
    ratio that the assessed value of other commercial and industrial 
    property of the same type in the same assessment jurisdiction has to 
    the true market value of the other commercial and industrial 
    property.
        (ii) levy or collect a tax on an assessment that may not be made 
    under clause (i) of this subparagraph.
        (iii) levy or collect an ad valorem property tax on air carrier 
    transportation property at a tax rate greater than the tax rate 
    applicable to commercial and industrial property in the same 
    assessment jurisdiction.
        (iv) levy or collect a tax, fee, or charge, first taking effect 
    after August 23, 1994, exclusively upon any business located at a 
    commercial service airport or operating as a permittee of such an 
    airport other than a tax, fee, or charge wholly utilized for airport 
    or aeronautical purposes.

    (B) Subparagraph (A) of this paragraph does not apply to an in lieu 
tax completely used for airport and aeronautical purposes.
    (e) Other Allowable Taxes and Charges.--Except as provided in 
subsection (d) of this section, a State or political subdivision of a 
State may levy or collect--
        (1) taxes (except those taxes enumerated in subsection (b) of 
    this section), including property taxes, net income taxes, franchise 
    taxes, and sales or use taxes on the sale of goods or services; and
        (2) reasonable rental charges, landing fees, and other service 
    charges from aircraft operators for using airport facilities of an 
    airport owned or operated by that State or subdivision.

    (f) Pay of Air Carrier Employees.--(1) In this subsection--
        (A) ``pay'' means money received by an employee for services.
        (B) ``State'' means a State of the United States, the District 
    of Columbia, and a territory or possession of the United States.
        (C) an employee is deemed to have earned 50 percent of the 
    employee's pay in a State or political subdivision of a State in 
    which the scheduled flight time of the employee in the State or 
    subdivision is more than 50 percent of the total scheduled flight 
    time of the employee when employed during the calendar year.

    (2) The pay of an employee of an air carrier having regularly 
assigned duties on aircraft in at least 2 States is subject to the 
income tax laws of only the following:
        (A) the State or political subdivision of the State that is the 
    residence of the employee.
        (B) the State or political subdivision of the State in which the 
    employee earns more than 50 percent of the pay received by the 
    employee from the carrier.

    (3) Compensation paid by an air carrier to an employee described in 
subsection (a) in connection with such employee's authorized leave or 
other authorized absence from regular duties on the carrier's aircraft 
in order to perform services on behalf of the employee's airline union 
shall be subject to the income tax laws of only the following:
        (A) The State or political subdivision of the State that is the 
    residence of the employee.
        (B) The State or political subdivision of the State in which the 
    employee's scheduled flight time would have been more than 50 
    percent of the employee's total scheduled flight time for the 
    calendar year had the employee been engaged full time in the 
    performance of regularly assigned duties on the carrier's aircraft.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1111; Pub. L. 103-
305, title I, Sec. 112(e), title II, Sec. 208, Aug. 23, 1994, 108 Stat. 
1576, 1588; Pub. L. 104-264, title I, Sec. 149(b), Oct. 9, 1996, 110 
Stat. 3226; Pub. L. 104-287, Sec. 5(66), Oct. 11, 1996, 110 Stat. 3395.)

                                          Historical and Revision Notes
                                                 Pub. L. 103-272
----------------------------------------------------------------------------------------------------------------
           Revised  Section                    Source (U.S. Code)               Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
40116(a)..............................  49 App.:1513(d)(2)(E).           Aug. 23, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, Sec.  1113(d); added Sept. 3,
                                                                          1982, Pub. L. 97-248, Sec.  532(b), 96
                                                                          Stat. 701.
                                        49 App.:1513(f) (words in        Aug. 23, 1958, Pub. L. 85-726, 72 Stat.
                                         parentheses).                    731, Sec.  1113(f); added Nov. 5,
                                                                          1990, Pub. L. 101-508, Sec.  9125, 104
                                                                          Stat. 1388-370.
40116(b)..............................  49 App.:1513(a).                 Aug. 23, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, Sec.  1113(a); added June 18,
                                                                          1973, Pub. L. 93-44, Sec.  7(a), 87
                                                                          Stat. 90; Nov. 5, 1990, Pub. L. 101-
                                                                          508, Sec.  9110(1), 104 Stat. 1388-
                                                                          357.
40116(c)..............................  49 App.:1513(f) (less words in
                                         parentheses).
40116(d)..............................  49 App.:1513(d)(1), (2)(A)-(D),
                                         (3).
40116(e)..............................  49 App.:1513(b).                 Aug. 23, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, Sec.  1113(b); added June 18,
                                                                          1973, Pub. L. 93-44, Sec.  7(a), 87
                                                                          Stat. 90; Sept. 3, 1982, Pub. L. 97-
                                                                          248, Sec.  532(a), 96 Stat. 701.
40116(f) (1)(A), (B)..................  49 App.:1512(c).                 Aug. 23, 1958, Pub. L. 85-726, 72 Stat.
                                                                          731, Sec.  1112; added Dec. 23, 1970,
                                                                          Pub. L. 91-569, Sec.  4(a), 84 Stat.
                                                                          1502; restated Feb. 18, 1980, Pub. L.
                                                                          96-193, Sec.  402, 94 Stat. 57.
40116(f) (1)(C).......................  49 App.:1512(b).
40116(f)(2)...........................  49 App.:1512(a).
----------------------------------------------------------------------------------------------------------------

    Subsection (a) is made applicable to subsections (b) and (e) of this 
section to avoid having to repeat the term being defined. In subsection 
(a), the words ``Commonwealth of Puerto Rico, the Virgin Islands, Guam'' 
are omitted as surplus because of the definition of ``territory or 
possession of the United States'' in section 40102(a) of the revised 
title. The word ``authority'' is substituted for ``agencies'' for 
consistency in the revised title and with other titles of the United 
States Code.
    In subsection (b), before clause (1), reference to 49 App.:1513(f), 
restated as subsection (c) of this section, is added for clarity. The 
words ``directly or indirectly'' are omitted as surplus. The text of 49 
App.:1513(a) (words after ``subsection (e) and'') is omitted as surplus.
    In subsections (d)(2)(A), before clause (i), and (f)(1)(C) and (2), 
the word ``political'' is added for consistency in the revised title and 
with other titles of the Code.
    In subsection (f)(1)(A), the word ``pay'' is substituted for 
``compensation'' for consistency in the revised title and with chapter 
55 of title 5, United States Code. The words ``rendered by the employee 
in the performance of his duties and shall include wages and salary'' 
are omitted as surplus.
    In subsection (f)(1)(B), the words ``means a State of the United 
States'' are substituted for ``also means'' for clarity.
    In subsection (f)(1)(C), the words ``of a State'' are added for 
clarity.
    In subsection (f)(2), before clause (A), the words ``as such an 
employee'' are omitted as surplus.


                             Pub. L. 104-287

    This amends 49:40116(d)(2)(A)(iv) to conform to the style of title 
49 and to set out the effective date for this clause.


                               Amendments

    1996--Subsec. (b). Pub. L. 104-264, in introductory provisions, 
substituted ``a State, a'' for ``a State or'' and inserted ``, and any 
person that has purchased or leased an airport under section 47134 of 
this title'' after ``of a State''.
    Subsec. (d)(2)(A)(iv). Pub. L. 104-287, which directed substitution 
of ``August 23, 1994'' for ``the date of enactment of this clause'', was 
executed by making the substitution for ``the date of the enactment of 
this clause'' to reflect the probable intent of Congress.
    Pub. L. 104-287 substituted ``levy'' for ``Levy''.
    1994--Subsec. (d)(2)(A)(iv). Pub. L. 103-305, Sec. 112(e), added cl. 
(iv).
    Subsec. (f)(3). Pub. L. 103-305, Sec. 208, added par. (3).


                    Effective Date of 1996 Amendment

    Except as otherwise specifically provided, amendment by Pub. L. 104-
264 applicable only to fiscal years beginning after Sept. 30, 1996, and 
not to be construed as affecting funds made available for a fiscal year 
ending before Oct. 1, 1996, see section 3 of Pub. L. 104-264, set out as 
a note under section 106 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 46301, 46316, 47134 of this 
title.