As of July 1, the state of Indiana can no longer impose a use tax on the value of aircraft temporarily located in the state for refurbishment, maintenance and overhauls.
With stark differences between House and Senate versions of FAA reauthorization bills working their way through Congress, some industry and congressional insiders see little chance of an agreement before September 30, the day when current taxes and fees that support the FAA expire.
The tax committee of the NBAA will host two events in conjunction with its 57th annual meeting and convention in Las Vegas in October. The NBAA 13th Annual Tax, Regulatory & Risk Management Conference (previously known as the NBAA Tax Conference) is scheduled for October 10 and 11 at the Las Vegas Hilton.
NBAA, the New York Aviation Management Association and the Aircraft Owners and Pilots Association have lobbied the New York state legislature to review aviation taxing procedures, with an eye toward eliminating the current tax on fuel and services. New legislation has been proposed, known as the New York Senate Aviation Industry Tax Cuts Proposal. The new rule would eliminate the business tax on all jet fuel and 100LL effective next year.
The Senate last week passed the Surface Transportation Reauthorization Act (the “Highway Bill”), which authorizes surface transportation spending through fiscal year 2009. The legislation includes two provisions that could affect business aviation if signed into law, according to NBAA.
Given the bucks or the ability to borrow them, buying a business jet ought to be a straightforward affair. And if you don’t care about the potential downsides, it may be. But the typical business aircraft transaction involves a multinational cast of players and a plethora of contracts to go with them.
The Aircraft Electronics Association (AEA) convention usually offers a sneak preview of the future of general aviation avionics. This year there were plenty of product introductions, but the real news from AEA 2007 unfolded before the show started.
Starting May 1, the Isle of Man–a British Crown Dependency located in the Irish Sea between the UK and Ireland–will have its own aircraft registry, open only to corporate and private aircraft. The UK government recently notified ICAO that it is allowing the Isle of Man to use the previously idle “M” tail number registration that was allocated to the UK in 1919.
A provision in the legislation to reauthorize the nation’s surface transportation programs, known as the Highway Bill, would “drastically alter the way the taxes on jet fuel are collected,” according to the National Air Transportation Association. Under the proposal, jet fuel would be taxed at the same 24.4-cent-per-gallon rate as diesel fuel.
NBAA and the National Air Transportation Association are creating a joint working group to address the fuel tax provisions of the Highway Bill that was signed by the President earlier this month. “Of particular concern is that taxes on jet fuel will be assessed at the diesel fuel rate [24.4 cents per gallon instead of the 21.9-cent per-gallon jet fuel rate] and deposited into the Highway Trust Fund,” NBAA said.