FAA Takes Up Cause To End Fuel Tax Changes

 - February 9, 2007, 10:29 AM

Business aviation groups welcomed a letter from the FAA assistant administrator for aviation policy to the commissioner of the Internal Revenue Service asking him to suspend implementation of new fuel tax rules that would impose a “significant administrative burden” on general aviation businesses and “create financial risk for the Airport and Airways Trust Fund.” The new rules would raise the tax rate on jet fuel to that of costlier highway diesel fuel, but allow aviation jet fuel buyers to apply for a refund for the difference between the highway rate and the jet fuel rate. The new provisions would also require that all jet fuel taxes collected at the higher rate first go into the Highway Trust Fund. From there, they would go into the Airport and Airway Trust Fund, but only after the purchaser applies for a credit.