SECTION 2. BACKGROUND

The American Jobs Creation Act of 2004 (Pub. L. 108–357) and the Safe, Accountable, Flexible, Efficient Transportation Equity Act (Pub. L. 109–59) provided a new system for imposing excise tax on kerosene used in aviation. Under this system, kerosene generally is taxed at a rate of 24.3 cents per gallon (excluding the 0.1 cent per gallon imposed for the Leaking Underground Storage Tank Trust Fund (LUST) tax). However, if the kerosene is removed directly into the fuel tank of an aircraft from a terminal or refinery, it will be taxed at lower aviation rates. Furthermore, if nontaxable use kerosene is removed directly into the fuel tank of an aircraft from a terminal, the general rate of tax is reduced to zero. For purposes of these exceptions, refueler trucks, tankers, and tank wagons that meet certain conditions (“refuelers”) are treated as part of a terminal if the terminal is located within a secure area of an airport ( i.e., a SAT).

H.R. Conf. Rep. No. 108–755, at 692 (2005), provided an initial list of terminals located within secure areas of airports (the SAT list). In Notice 2005–4, 2005–1 C.B. 289, the IRS adopted this list, with some modifications, as its initial SAT list. Notice 2005–80, 2005–2 C.B. 953, modified the SAT list. Currently, these documents are the only public record of the SAT list.