TagAviation Fuel(72)

The FAA sent a letter to Washington State's Aviation Director in October 2025 reviewing how the state collects and spends aviation fuel taxes, noting that despite having an approved compliance plan, the state has still not provided actual tax collection figures after 11 years. The FAA flagged concerns about three types of taxes — aircraft fuel tax, sales and use taxes, and environmental taxes (HST and PPT) — questioning whether the environmental tax revenues are being properly directed toward aviation purposes. The agency also reviewed over $97 million in state appropriations claimed as offsets, finding more than $82 million ineligible and nearly $15 million requiring further justification before a final compliance determination can be made.

A report examining the barriers to implementing sustainable aviation fuel (SAF) in Massachusetts, authored by Neil Rasmussen and Chuck Collins from the Institute for Policy Studies. The report analyzes challenges and obstacles facing SAF adoption in the state.

The FAA's Financial Compliance Division issued guidance in December 2024 establishing a testing plan to verify that states and local governments properly direct aviation fuel tax revenues toward airport and aviation purposes, as required by federal regulations. The plan outlines how jurisdictions are selected for review, what financial data they must submit, and how compliance is evaluated — with the State of Washington serving as the initial pilot case for the program.