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The Economic Implications Of Evolving Aviation Funding Policy In Tennessee, Hunter Pressley Mccracken

Masters Theses

The majority of state funding for capital improvements at Tennessee’s general aviation and commercial airports comes through grants awarded from the Tennessee Transportation Equity Trust Fund (TETF). Through a 4.5 percent sales and use tax on the consumption of aviation fuel, users help to fund the continued improvement and maintenance of aviation facilities around the state. Aircraft refueling operations associated with the FedEx “SuperHub” in Memphis were responsible for two-thirds of the TETF’s revenue for Fiscal Year 2014. In response to speculation that FedEx would relocate its refueling operations to reduce its fuel tax liability, the Tennessee General Assembly passed …