House Voices Add To Concern Over 'Fuel Fraud' Law | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 07.20.17

Airborne 07.17.17

Airborne 07.18.17

Airborne 07.19.17

Airborne 07.20.17

Airborne 07.21.17

Airborne-Unmanned 07.18.17

Airborne-YouTube

AMA 07.20.17

Airborne 07.17.17

Airborne 07.18.17

Airborne 07.19.17

Airborne 07.20.17

Airborne 07.21.17

Airborne-Unmanned 07.18.17

NEW!!! 2017 AirVenture Innovation Preview -- YouTube Presentation / Vimeo Presentation

Wed, May 02, 2012

House Voices Add To Concern Over 'Fuel Fraud' Law

NBAA Joins Other Advocacy Organizations Opposing The Revenue Shift

In an April 25 letter to Representative Dave Camp (R-4-MI), chairman of the House Committee on Ways & Means, a bipartisan group of members from the U.S. House of Representatives called for the repeal of a seven-year-old law that increases costs for Jet-A users, while preventing a significant amount of fuel tax revenue from being used to support aviation programs.

The so-called "fuel fraud" provision went into effect in October 2005 to ostensibly combat the possibility that commercial truck operators could purchase Jet-A for use in their vehicles in order to avoid paying higher taxes on diesel. Aviation groups and the lawmakers who signed the letter maintain that the law is a "solution in search of a problem," since there is no documented evidence that truckers have ever done this on a large scale.
 
"This provision is harming our national airspace system by depriving it of funds needed to enhance safety and efficiency," reads the April 25 letter, which was signed by 32 House representatives. "...We respectfully request the inclusion of a provision in the next highway reauthorization legislation that would repeal the fuel fraud provision."

Since enactment of the policy, taxes on both Jet-A and highway diesel fuel have been collected at a rate of 24.4 cents-per-gallon (CPG), although the tax on jet fuel has legally remained 21.9 CPG. In order for that revenue to be properly routed to aviation needs - and for vendors to be reimbursed for the 2.5 CPG difference - aviation fuel providers are required to jump through a series of arduous bureaucratic hoops, including registering with the Internal Revenue Service and submitting detailed records of each fuel purchase.

"The administrative hassle associated with this process has resulted in many fuel vendors opting to pass the additional tax on to the end user, and forego the process of applying for a refund," the letter notes. "When these fuel vendors forgo the refund process, due to its administrative burden, the Airport and Airway Trust Fund receives no revenue from the taxes collected on the sale of aviation jet fuel because non-commercial end users are not permitted to apply for the refund themselves."
 
NBAA has joined with the National Air Transportation Association and several other aviation groups in calling for a repeal of the "fuel fraud" policy.

FMI: www.nbaa.org

 


Advertisement

More News

ONE Aviation Provides Singular Support For Coverage of AirVenture 2017!

Having Re-Energized Personal Jet Flying Already, One Aviation Prepares To Do It Again! ONE Aviation delivers innovative access to general aviation by bringing together a line of pr>[...]

Progressive Aerodyne's Searey, the World's Best Sport Amphib, Presents OSH17!

Check Out The New Progressive Aerodyne Searey Elite and Searey Adventure at OSH Display #193 Progressive Aerodyne was founded in 1991 by Kerry Richter and his business partners, Wa>[...]

Trig Avionics Stacks The Deck To Provide ANN's OSH17 Special Event Coverage

High-Tech, Light-Weight Trig Avionics Delivers Their Latest Innovations to Oshkosh! Trig Avionics are experts in the design and manufacture of compact and innovative certified avio>[...]

Sonex Aircraft Steps Up As An AirVenture 2017 Special Coverage Sponsor

Sonex Aircraft and AeroConversions Products exhibit at AirVenture 2017 -- Located in booth 605/622 in the North Aircraft Display Area Be sure to catch the Sonex Aircraft Open House>[...]

They Deliver! Sportys Pilot Shop Brings You Oshkosh 2017

Sporty's Pilot Shop Is A Pivotal GA Resource! Sporty’s Pilot Shop was founded over 50 years ago by a flight instructor, and ever since has been for pilots and by pilots. Hal >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC