Location:
AERONAUTICS; TAXATION;
Scope:
Connecticut laws/regulations;

OLR Research Report


July 17, 2012

 

2012-R-0317

AIRPORT ACCESS TAX

By: Rute Pinho, Associate Analyst

You asked (1) for an explanation of the “airport access tax” charged by off-airport parking companies at Bradley Airport and (2) whether the tax applies to add-on services (e.g. car washes and oil changes) provided by these companies.

The tax is related to the airport access fees Bradley Airport charges companies conducting business on airport grounds. The fees, listed in Attachment 1, apply not just to airport parking companies, but to various companies conducting a service for airport users or businesses, including car rental, hotel courtesy shuttle, taxi, charter bus, and livery companies.

According to Jeffrey Stewart, Director of Leasing for the Department of Transportation's Bureau of Aviation, the companies typically pass along the cost of these fees to customers by adding an “airport access tax” to bills. The companies impose the tax on the customer's total charges for goods and services purchased at the airport, including any add-on services purchased.

The access fee for airport parking companies is currently 8% of gross receipts and is scheduled to increase to 10% on July 1, 2013. The fee was set by the Connecticut Airport Authority (CAA), which has broad authority to set rates, fees, rents, and charges on people and entities that use the state's airport facilities (PA 11-84, codified at CGS 15-120ii). Under prior law, the Department of Transportation set the fees, subject to a statutory 4% cap (CGS 15-101m).

RP:ro

Attachment 1