§ 40116. State taxation
(a)
Definition.—
In this section, “State” includes the District of Columbia, a territory or possession of the United States, and a political authority of at least 2 States.
(b)
Prohibitions.—
Except as provided in subsection (c) of this section and section
40117 of this title, a State, a political subdivision of a State, and any person that has purchased or leased an airport under section
47134 of this title may not levy or collect a tax, fee, head charge, or other charge on—
(c)
Aircraft Taking Off or Landing in State.—
A State or political subdivision of a State may levy or collect a tax on or related to a flight of a commercial aircraft or an activity or service on the aircraft only if the aircraft takes off or lands in the State or political subdivision as part of the flight.
(d)
Unreasonable Burdens and Discrimination Against Interstate Commerce.—
(1)
In this subsection—
(A)
“air carrier transportation property” means property (as defined by the Secretary of Transportation) that an air carrier providing air transportation owns or uses.
(2)
(A)
A State, political subdivision of a State, or authority acting for a State or political subdivision may not do any of the following acts because those acts unreasonably burden and discriminate against interstate commerce:
(i)
assess air carrier transportation property at a value that has a higher ratio to the true market value of the property than the ratio that the assessed value of other commercial and industrial property of the same type in the same assessment jurisdiction has to the true market value of the other commercial and industrial property.
(ii)
levy or collect a tax on an assessment that may not be made under clause (i) of this subparagraph.
(e)
Other Allowable Taxes and Charges.—
Except as provided in subsection (d) of this section, a State or political subdivision of a State may levy or collect—
(f)
Pay of Air Carrier Employees.—
(1)
In this subsection—
(B)
“State” means a State of the United States, the District of Columbia, and a territory or possession of the United States.
(C)
an employee is deemed to have earned 50 percent of the employee’s pay in a State or political subdivision of a State in which the scheduled flight time of the employee in the State or subdivision is more than 50 percent of the total scheduled flight time of the employee when employed during the calendar year.
(2)
The pay of an employee of an air carrier having regularly assigned duties on aircraft in at least 2 States is subject to the income tax laws of only the following:
(3)
Compensation paid by an air carrier to an employee described in subsection (a) in connection with such employee’s authorized leave or other authorized absence from regular duties on the carrier’s aircraft in order to perform services on behalf of the employee’s airline union shall be subject to the income tax laws of only the following:
(B)
The State or political subdivision of the State in which the employee’s scheduled flight time would have been more than 50 percent of the employee’s total scheduled flight time for the calendar year had the employee been engaged full time in the performance of regularly assigned duties on the carrier’s aircraft.