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NBAA Welcomes Senate Attempt to Suspend Onerous 'Fuel Fraud' Rules for Business AviationNBAA Sounds Call to Action for Members to Contact Congress in Support of New Legislation
Contact: Dan Hubbard at (202) 783-9360 or [email protected]
WASHINGTON, DC, April 28, 2006 – The National Business Aviation Association (NBAA) today commended Sen. Conrad Burns (R-MT) for introducing a legislative proposal seeking suspension of so-called "fuel fraud" tax rules that are confusing and time consuming for companies involved in the sale of aircraft fuel, and have the potential to adversely impact aviation infrastructure projects.
The rules were included in highway-spending legislation approved by Congress last year, and were intended to discourage highway diesel fuel operators from using jet fuel to avoid paying the higher tax on highway diesel fuel. The rules require aircraft fuel vendors to pay taxes on jet fuel at the costlier rate applied to highway diesel fuel, then apply for a refund for the difference – a lengthy and bureaucratic process.
To make matters worse, the rules require all fuel taxes collected at the higher rate to be deposited into the Airport and Airway Trust Fund only after a refund of credit has been applied for, creating the potential to decrease funding for important aviation infrastructure projects.
If enacted, Sen. Burns's proposal, entitled "The Aviation Fuel Tax Simplification Act" (S.2666), would require the IRS to shelve the rules until September 30, 2007, to allow time for further examination of the tremendous compliance challenges they pose to industry. The legislation would also restore taxes paid directly to the Airport and Airway Trust Fund, to ensure that aviation maintenance and improvement projects can continue unabated.
NBAA President and CEO Ed Bolen thanked Sen. Burns, the chairman of the Senate Commerce Committee's Aviation Subcommittee, for introducing his proposal, and called upon NBAA Members to use the Association's online Contact Congress resource to sound their support for the legislation with their federal representatives.
"The business aviation community is grateful to Senator Burns for taking action on this issue of great importance to our industry," Bolen said. "Now, it is time for those of us in business aviation to do our part to support the Senator's proposal."
Bolen urged everyone in business aviation to send a newly developed message of support for the legislation, available at NBAA's Contact Congress resource. The new message can be accessed by visiting NBAA's home page, www.nbaa.org, and clicking on the Contact Congress banner ad at the top right corner of the site. Those wishing to link to the message directly can do so by using the following address: http://www.nbaa.org/s2666.
"The business aviation community must make its voice heard in support of this critically needed proposal," Bolen continued. "I strongly encourage those in our industry to alert their federal representatives to the importance of this legislation today."
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Founded in 1947, NBAA serves more than 7,000 Member Companies by promoting the aviation interests of organizations utilizing business aircraft in the United States and worldwide. The association provides more than 100 products and services to the business aviation community, including the NBAA Annual Meeting & Convention, the world's largest civil aviation trade show. Learn more about NBAA at www.nbaa.org.