FedEx truckNASHVILLE, Tenn. - Republican Gov. Bill Haslam's administration wants lawmakers to approve a cut in aviation fuel taxes for Memphis-based FedEx Corp.
The Commercial Appeal reports that FedEx on average pays up to three-quarters of the total 4.5-cent-per-gallon tax collected by the state each year.
Under Haslam's proposal, FedEx's aviation fuel tax liability would be capped at $10.5 million - down from the $32 million the company paid last year. The cap would be phased in over four years.
According to testimony in committees this week, no other taxpayer exceeds the proposed cap. Southwest Airlines comes closest at $6 million per year.
The aviation fuel tax revenues pay for improvements at large and small airports across the state. Airport administrators say there's no plan to replace the money.