Excise tax in the United States

October 22, 2013 - 8:15am
Aviation fuel taxes imposed on general aviation raise $622 million annually, according to the FAA. General aviation lobby groups believe that the aviation fuel tax is the fairest and most efficient way to collect GA’s contribution to air traffic control system costs.

The debate rages on.

Should general aviation pay more toward the cost of the nation’s air traffic control system, especially if it would hasten the implementation of the NextGen air traffic control (ATC) system and depoliticize FAA funding? If so, is the current system of fuel and excise taxes the best way to do it?

October 15, 2013 - 2:15pm

NBAA released its new Federal Excise Taxes Guide late last week, marking the first time the guidelines have been updated since 2005. It is intended to provide business aircraft owners, flight departments and charter operators with a basic understanding of the federal excise taxes (FET) that apply to business aircraft activity.

September 27, 2012 - 3:35pm

Volo Aviation announced today that it has been awarded a five-year contract to manage Sebring Flight Center, the municipally owned FBO at Sebring Regional Airport in Central Florida. To increase traffic at the field, the company plans to reach out to commercial and corporate clients who might be able to take advantage of Sebring’s designation as a U.S. Foreign Trade Zone. According to Volo, this designation allows operators departing Sebring on international flights to uplift fuel without having to pay federal excise taxes.

September 2, 2012 - 3:55am

With the growing complexity of myriad federal, state and local taxes and fees, and the increasing intensity with which they are enforced, there was plenty to discuss at the Commercial Operators Tax (COT) seminar, held September 7 and 8 in Scottsdale, Ariz. Co-sponsored by Conklin & de Decker and the National Air Transportation Association (NATA), the event attracted business aircraft owners, operators and management companies.

April 24, 2012 - 6:00pm

A 1996 document issued by the House Committee on Ways and Means appears to underscore the intent of Congress regarding application of the so-called “ticket tax” (excise tax) to airline passengers. The document contradicts a March 9 Internal Revenue Service memo that seeks to apply the 7.5-percent excise tax to fees charged by aircraft management companies to aircraft owners flying in their own aircraft for their own business or personal reasons.

April 4, 2012 - 4:10am

The release of an Internal Revenue Service (IRS) memo on March 9 outlining guidance on how to apply the federal excise tax (FET) to fees paid to aircraft management companies adds to business aviation’s burden at a time when the industry continues to suffer from weak demand, high fuel prices and public criticism of this form of travel. This memo isn’t the first time the IRS has attempted to apply the 7.5-percent FET to non-commercial Part 91 flight operations.

April 3, 2012 - 3:45pm

The IRS has countersued NetJets for more than $360 million in alleged uncollected excise taxes. In November, NetJets sued the federal government for what it said were wrongfully imposed taxes, interest and penalties totaling more than $642.7 million. NetJets claimed that as a manager of private aircraft, it was not required to pay a “ticket tax” because its services were not taxable transportation.

January 5, 2012 - 2:10am

A new 10-hour jet card is available from broker Magellan Jets. The card costs $34,950 and imposes no daily minimum flight times, federal excise taxes, positioning charges within the base service area, blackout dates or fuel surcharges. The card includes 10 hours in an Eclipse 500 very light jet for flights in the Northeast U.S.

March 31, 2009 - 4:54am

The Government Accountability Office (GAO) warned last month that the excise taxes that feed the Airport and Airway Trust Fund have been lower than previously forecast, while estimates of future revenues have declined because of a drop in passenger traffic, fares and fuel consumption. Meanwhile, the uncommitted balance in the trust fund has been decreasing since Fiscal Year 2001.

March 4, 2009 - 9:32am

A line in President Obama’s 134-page budget for Fiscal Year 2010 has put general aviation lobbyists on high alert. Page 129 contains a notation that “the budget proposes repealing some aviation excise taxes and replacing these taxes with direct user charges.” NBAA said it is “very troubled” by the budget outline because it appears to leave the door open to consideration of aviation user fees for funding the FAA.

 
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