Senate committee advances bill that would let XNA seek detachment and taxing authority over local objections

Senator Jim Petty, sponsor of Senate Bill 414, closed debate and the City, County & Local Affairs Committee voted to advance the bill after extensive testimony from airport officials, community members and elected representatives.

The bill, as explained during committee, creates a statutory process for an airport authority to seek detachment (de‑annexation) and to pursue formation of a taxing commission that could levy certain sales taxes to support airport operations and debt repayment. Petty said the measure is intended to give a regional airport authority negotiating power "so we will be on equal footing" with an annexing city and allow discussions to be meaningful.

Representative Hawk, speaking in opposition, told the committee that if SB 414 passes it "could be one of the very last public meetings ever held culminating in a vote that XNA would ever face." He warned the bill would allow XNA to detach without a public vote and said airport-generated sales taxes amount to roughly "60% of the sales tax revenue collected within the city," a figure he used to argue the city of Highfill would be financially harmed. Hawk also said the proposed taxing commission could levy up to a 3% sales tax by resolution of a majority of unelected members without a public referendum.

Tom Lundstrom, a member of the XNA board of directors, and Brian Burke, XNA general counsel and director of compliance, testified in support. Burke disputed several points raised by opponents, saying the bill does not change the composition of the airport authority board and that the bill "sets the table for conversations to be had between a city and a quasi‑municipal entity to figure out whether they can continue to coexist." Burke described the bill’s effects as not immediate and said any detachment would allow an 8‑to‑14‑year planning horizon for the city to respond to revenue changes.

Committee members pressed witnesses on the scope of taxing authority. Witnesses and a committee exchange clarified that the existing regional airport statute explicitly authorizes a tax on aviation fuel; proponents argued the regional airport act already grants many quasi‑municipal powers to airport authorities. Board members said changes to the authority agreement (for example, adding a municipality to the authority’s membership) would require unanimous agreement of the participating cities and counties.

After discussion, Senator Sullivan moved to advance the bill; Senator McKee seconded. A roll call announced by the committee recorded Senators Stubblefield and Bryant voting no; Senators Hammer, Sullivan, McKee, Petty and Flippo voting yes. The chair announced the bill passed out of committee.

The committee record shows divided views: proponents framed SB 414 as a tool to enable negotiation and protect airport operations; opponents framed it as a transfer of taxing power to an unelected body that would reduce local voter control. The sponsor and supporting witnesses said audits and financial oversight exist for XNA; opponents said public financial detail is difficult to find and raised concerns about fraud and lack of local representation.

The committee will report SB 414 to the full Senate. No further action date was announced during the session.