NBAA has released an updated version of its Federal Excise Taxes Guide: Details on Air Transportation and Fuel Taxes. Last published in 2005 as the NBAA Federal Excise Tax Handbook, the new guide includes areas that have seen changes–such as the application of FET on fractional aircraft ownership operations; IRS legal interpretations regarding aircraft service and pilot service agreements; and reimbursement under the “Schwab re-interpretation,” based upon the latest information from the IRS, and other sources.
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?
Aircraft operations in Indiana are about to become more affordable after state legislators approved a slate of aviation tax exemptions and restructurings. The measures, adopted at the urging of the Aircraft Owners & Pilots Association (AOPA) and other aviation groups, remove state sales tax on jet fuel and 100LL avgas and restructure the previously existing excise tax on aviation fuel to a fixed total state tax rate.
A provision inserted into a 2005 highway bill that has given business and general aviation fuel purveyors a collective headache ever since it was enacted might be repealed in the next highway reauthorization bill. Thirty-two members of the House of Representatives signed a letter to Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, asking that the provision be deleted from new highway legislation now under consideration.
With the House of Representatives scheduled to vote this week on H.R.7, a Federal Highway Administration reauthorization bill, NATA is lobbying to get a provision included in the bill that would repeal the “onerous fuel fraud tax.” The fuel fraud provision, which was included in a 2005 FHA bill, changed the collection of taxes for noncommercial aviation jet fuel and required the funds to be deposited into the Highway Trust Fund.
Taxes. I would like to pay fewer taxes, or none at all, but I accept why societies need them. I know some folks think we should do away with taxes altogether, but I can’t see how that could work. Like death, taxes are inevitable. On that cheery note, there is one tax I believe the aviation community needs to keep and support, if for no reason other than to avoid its alternative. The tax is the one on aviation fuel; its alternative is user fees.
Million Air expects its newest, and 29th, FBO to be open at the Gulfport-Biloxi (Miss.) International Airport by the end of next month, company officials said earlier this week during a media tour of the brand-new facility. The $12 million, 52,000-sq-ft building, which is currently “about 90 percent” complete, sits on a nine-acre site with more than 200,000 sq ft of ramp space.
The recently passed Senate FAA reauthorization bill eliminates the so-called fuel fraud tax that has been causing major annoyance and expense for U.S. FBOs, according to the National Air Transportation Association. The bill does increase fuel taxes to 36 cents from 22 cents per gallon.
When the Senate passed an FAA reauthorization bill in late March, the general aviation community breathed a little easier. Like the companion legislation already passed in the House, it did not contain any user fees for GA.
Even though the nation’s airlines are playing nice with general aviation over the contentious question of user fees, the Obama Administration has clearly signaled that it wants to fund the FAA with more user fees in Fiscal Year 2011.
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