Bill > HB2153

This bill increases the tax rate on aircraft fuel used in turbine engines (such as turbo-prop or jet aircraft) from three cents to six cents per gallon, with a mechanism for biennial adjustments based on inflation. Specifically, on July 1 of each odd-numbered year, the tax rate will be automatically adjusted according to the percentage increase in the Consumer Price Index for All Urban Consumers, West Region, with the new rate becoming effective on the following January 1. The bill also modifies how the additional tax revenue will be distributed, allocating 75% to various airport assistance programs like matching federal grants, emergency preparedness projects, airport infrastructure development, and supporting commercial air service in rural areas, and 25% to state-owned airports for safety improvements and infrastructure projects. Additionally, the bill increases the percentage of tax revenue that can be used for the Oregon Department of Aviation's operating expenses from 55% to 77.5%. The changes to the tax rates and distribution will take effect on January 1, 2026, and the bill itself will become effective 91 days after the 2025 legislative session adjourns.

Transportation and Infrastructure

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2153