Kodiak Airport Act (675)

Preamble This act establishes the Kodiak Airport Authority (KAA), tasked with constructing and maintaining airports within the Republic of Kodiak. The funding mechanism includes a special sales tax on airport businesses and exemptions designed to incentivize economic activity and growth in the aviation sector.

Article 1 - Establishment of the KAA

1.1 Creation of Authority: 1.1.1 The Kodiak Airport Authority (hereafter referred to as the Authority) is hereby established as a government department under the Ministry of Transportation. 1.1.2 The Authority shall be responsible for the design, construction, operation, and maintenance of airports within the Republic of Kodiak. 1.1.3 The Authority shall operate as a self-sustaining entity, funded primarily through revenue mechanisms outlined in this Act.

Article 2 - Funding Mechanisms

2.1 Airport Sales Tax: 2.1.1 A 5% sales tax is hereby imposed on all goods and services sold by businesses operating within airport premises. 2.1.2 Revenue collected from the airport sales tax shall be allocated exclusively for the construction, maintenance, and operation of airports under the Authority's jurisdiction.

2.2 Tax Exemptions for Airport Businesses: 2.2.1 Businesses that invest in and operate within the airport premises shall be exempt from all taxes except:

• Income tax on individual employees.
• The special 5% airport sales tax. 2.2.2 Businesses must maintain operations within the airport for a minimum of five years to qualify for these exemptions.

2.3 Landing and Gate Fees: 2.3.1 The Authority shall have the power to set landing tax rates for aircraft using the airports under its jurisdiction. 2.3.2 The Authority shall also establish gate usage fees for airlines and other operators. 2.3.3 Rates shall be reviewed annually and adjusted as necessary to ensure the financial sustainability of the Authority.

2.4 Startup Funding: 2.4.1 The Ministry of Finance is authorized to allocate an initial sum of ₣3 billion to the Authority for the purposes of establishing the department and beginning construction on priority airport projects. 2.4.2 These funds shall be distributed over a two-year period and shall be subject to audit by the General Assembly.

Article 3 - Operational Responsibilities

3.1 Airport Development: 3.1.1 The Authority shall prioritize the construction of airports in underserved regions to enhance connectivity and economic growth. 3.1.2 All airports developed under this Act shall include facilities for passenger travel, cargo logistics, and emergency services.

3.2 Maintenance and Upkeep: 3.2.1 The Authority shall ensure that all airports meet national and international safety standards. 3.2.2 A Maintenance Reserve Fund shall be established, funded by 15% of annual revenue generated by the Authority, to cover unforeseen repair and operational costs.

3.3 Collaboration with Private Entities: 3.3.1 The Authority is encouraged to enter into public-private partnerships (PPPs) for the efficient construction and operation of airport facilities. 3.3.2 Private entities participating in such partnerships shall be entitled to the same tax exemptions as outlined in Article 2.2.

Written by Malia Mackenzie Marshall (CAP)