HAI
22 Feb, 12HAI President Matt Zuccaro, along with the presidents of seven other aviation trade associations, sent a letter to the chairmen and ranking members of the U.S. House of Representatives aviation and highway subcommittees on Feb. 10, urging them to repeal the “fuel fraud” provision that was introduced in the 2005 surface transportation act which adds money to the Highway Trust Fund at the expense of the Airport and Airway Trust Fund (AATF).
The fuel fraud provision changed the collection of taxes for non-commercial aviation jet fuel and required the funds to be deposited into the Highway Trust Fund. This diversion of aviation fuel tax revenue has cost the AATF approximately $50 million annually since the bill’s enactment and is anticipated to cost another $500 million over the next ten years.
While fuel vendors can apply for a refund of the tax, the burdensome process of filing for the 2.5-cent-per-gallon refund with the IRS has put an undue burden on aviation businesses, although there is no substantial evidence to prove that fuel fraud is taking place.
“When these fuel venders forgo the refund process, due to its administrative burden, the aviation trust fund receives no revenue from the taxes collected on the sale of that aviation jet fuel because non-commercial end users are not permitted to apply for the refund themselves,” the presidents said in their letter.
To read the full letter sent by HAI and the seven other aviation trade associations, please click here.
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