ARSA RSS Feed ARSA LinkedIn
Ask ARSA Pay ARSA

Aviation Groups Aim to Repeal Onerous Fuel Fraud Measure

A coalition of aviation industry associations are seeking repeal of an unnecessary and onerous fuel fraud provision that places an unreasonable burden on business owners, deprives the Airport Airway Trust Fund of much needed revenues, and raises costs for noncommercial jet fuel users.

At issue is a measure included in the nation’s last long-term surface transportation law that required taxes on noncommercial aviation jet fuel be collected at the highway diesel fuel rate (2.5 cents higher than the aviation jet fuel tax).

While the law permits noncommercial jet fuel suppliers to file claims with the IRS to reimburse the cost difference, due to the substantial administrative burdens this places on the providers, many simply choose to forego the paperwork hassle and pass the cost to consumers.

The law not only raised consumer costs, it also permanently deprives the Airport & Airways Trust Fund of $50 million annually, as the collected tax is kept in the Highway Trust Fund and only transferred to the aviation account if the fuel supplier submits a refund application.

The provision was implemented due to unfounded worries that highway users were using aviation jet fuel to avoid paying higher taxes; an illogical concern given that aviation fuel is more expensive than diesel and can cause substantial harm to diesel engines, providing no incentive to engage in such efforts.

ARSA supports efforts to repeal this onerous tax and encourages its members to do the same. Please visit www.ARSAaction.org to urge your lawmakers’ support for this matter.

~~~ posted 3/7/12 ~~~



More from ARSA

Going Global Again – Full Series On Demand

International markets mean expanded business opportunities that require an expansive regulatory understanding. Want your regulatory knowledge to travel well? Click here to purchase “Going Global” sessions together and save. Going…Read More

Industry Pushes Congress to Support FAA Leadership

On Sept. 13, ARSA joined 27 organizations including ally trade associations, labor unions, and business advocates in urging Congress to provide “permanent leadership and clear direction” for the American aviation…Read More

Digitalization Survey to Instruct International Regulators

ARSA has partnered with several industry allies in conducting an aviation digitalization survey. Member companies are encouraged to participate.  The survey seeks feedback from maintainers, manufacturers, operators, lessors, and others…Read More

Encouragement & Reality for Part 65 Petitioner

On Sept. 5, ARSA commented on a petition for exemption from the qualifications for a mechanic’s certificate defined in part 65 subpart D. The association applauded the petitioner’s commitment to…Read More

Hotline Highlight – Get in on the Joke

The hotline – ARSA’s premier member newsletter – contains news, editorial content, analysis and resources for the aviation maintenance community. All members should ensure they receive their edition the first…Read More
Schaeffler Aerospace
ARSA