Idaho Governor Butch Otter has signed bill H.417, which exempts sales tax on aircraft parts installed on out-of-state aircraft. An emergency clause included in the legislation makes the bill take effect immediately.
The National Air Transportation Association (NATA) is calling on its members to urge their congressional representatives to include language in pending legislation to repeal the “fuel fraud” provision. The provision, part of the 2005 Highway Bill, changed the collection of taxes for non-commercial jet fuel and required them to be deposited into the Highway Trust Fund.
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.
Italy’s parliament has approved plans for a new tax on all business aircraft, regardless of country of registration, as part of the effort to reduce the country’s massive national debt. Business aviation interests expect to learn the details of how the legislation will work by the end of February, but it could impose a tariff of several hundred thousand dollars on the owner of a large jet that spends more than 48 consecutive hours in the country.
Italy’s parliament this week approved plans for a new tax on business aircraft, but details of how the legislation will work in practice are not anticipated until later next month. However, it is expected that tariffs could reach about $385,000 for larger business jets that spend more than 48 consecutive hours in the country. The tax will apply only to privately owned aircraft and will exclude those operated under commercial air operator certificates, as well as aircraft operated by governments and for purposes such as emergency medical services.
The U.S. government claims that NetJets owes the Internal Revenue Service (IRS) nearly $643 million in federal excise taxes, assessed penalties and interest. The amount is just $125 million less than the $768 million in pre-tax earnings that NetJets parent Berkshire Hathaway reported in its last financial report for the “other” category of subsidiaries that includes NetJets, FlightSafety International and other businesses.
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.
Four of NetJets’ subsidiaries–NetJets Aviation, NetJets International, NetJets Large Aircraft and Executive Jet Management (EJM)–are suing the U.S. government over a $642.7 million IRS tax bill for past federal excise taxes (aka “ticket tax”) and assessed penalties and interest.
After four highly successful years Brian Johnson, the man behind the Isle of Man Aircraft Registry and the island’s first Director of Civil Aviation, leaves on August 26 to pursue a new challenge (the Swaziland registry, according to some reports).
Advocacy efforts by NBAA members, the Connecticut Legislative Aviation Caucus and the Connecticut Business Aviation Group to fight a personal property tax on all aircraft based in the state were successful. Last month, the House and Senate in Connecticut passed a budget that does not contain “the potentially devastating tax increases for aviation that were proposed in earlier versions,” NBAA said.