NBAA Releases Updated Excise Tax Guide
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.
Complex topics including percentage tax on domestic travel possession, domestic segment fees, head taxes on international transportation, command and control, available exemptions and charter broker obligations are broken down into plain language, and the book also outlines FET applicability on air cargo-only operations. “Both FAR Part 91 and 135 operators deal with federal excise taxes on a daily basis, making this guide a key resource for member companies,” said Scott O’Brien, the association’s senior manager of finance and policy. “NBAA is pleased to provide this significantly improved guide to our members, and the Association is grateful to the volunteers on NBAA’s tax committee who developed and reviewed this publication.” It is available to all NBAA members through download at www.nbaa.org/fet.