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.
Operators of Bombardier jets are dismayed because they now have to pay state sales taxes on parts purchased through Bombardier’s Smart Parts program. Several operators who spoke to AIN on condition of anonymity said one of the primary reasons they participate in Smart Parts is to control and budget annual operating costs. “This adds a new dimension to overhead we didn’t budget for 2010,” one said.
NBAA applauded the Washington State legislature’s decision to scuttle a provision for an “onerous” tax proposal for aircraft in its annual spending bill. To oppose the tax hike, NBAA banded with other groups–including the Pacific Northwest Business Aviation Association, AOPA and the Washington Pilots Association–to form a unified grassroots coalition known as the Washington Aviation Coalition.
Universal Weather & Aviation (Booth No. 7030) is launching a new service to guarantee that fuel purchases in Europe are made at the correct rate of value added tax (VAT). The complimentary service, which started on May 1, should overcome the headaches commonly associated with calculating which VAT rate should apply based on an aircraft operator’s status.
NBAA applauded the Washington State legislature’s decision to scuttle a provision for an “onerous” tax proposal for aircraft in its annual spending bill. Final passage of the spending bill, which was approved without the tax on Monday, came near the end of a special legislative session called by Gov. Chris Gregoire after the regular session expired last month.
Although some operators expressed concern because Bombardier has begun charging sales tax for parts covered under its Smart Parts program, this is a fairly normal requirement, according to tax expert Nel Stubbs, vice president of Conklin & de Decker. “If an aircraft is based in a state that has a sales/use tax,” she explained, “and the part is brought into that state and installed on an aircraft, that state’s tax rules apply.
A recent announcement by Bombardier Aerospace is causing a stir among Smart Parts customers. The company is going to begin charging state sales tax on all parts ordered through the hourly program; the tax is not included in the hourly program cost. The change will apply only to sales in those states that require vendors to charge tax. The exact number of states involved was not readily available but is believed to be fewer than 10.
At press time, NBAA and other aviation alphabet groups continued to fight a proposed bill in the Washington state legislature that would impose a 0.5-percent excise tax on aircraft in the state. House Bill 3176 and accompanying Senate Bill 6873 would base this annual tax on the most recent sales price, depreciated via a state-mandated schedule.
NBAA issued a call to action to oppose a proposed bill in the Washington state legislature that would impose a 0.5-percent excise tax on aircraft in the state. House Bill 3176 (HB 3176) and accompanying Senate Bill 6873 (SB 6873) would impose this annual tax, according to the most recent sales price, depreciated via a state-mandated schedule.
The UK government is considering a demand from the European Commission (EC) that it change its tax legislation to remove an exemption from value-added tax (VAT) for privately operated aircraft weighing more than 8,000 kilograms (17,636 pounds). On June 25, the EC “formally re-quested” through a so-called “reasoned opinion” that Britain bring its VAT rules in line with those of the 27-state European Union.