Alexandria, VA, May 7, 2008 - National Air Transportation Association (NATA) President James K. Coyne expressed disappointment today after the U.S. Senate yesterday failed to pass a long-term Federal Aviation Administration (FAA) reauthorization bill that had been held up for more than a week as Senators attempted to reconcile a number of issues that ultimately stalled the measure.
The Senate measure dropped a $25 flight fee that had been originally included by the Senate Committee on Commerce, Science and Transportation. The legislation increases the tax on jet fuel from 21.9 cents per gallon to 36 cents per gallon. There is no tax increase on aviation gasoline. All other existing passenger ticket taxes, segment fees, and cargo waybill taxes would remain intact, and no new user fees are included in the bill.
The legislation also includes a repeal of the "fuel fraud" provision enacted as part of the 2005 surface transportation reauthorization bill that required aviation fuel retailers to purchase jet fuel from their distributors at the same rate as highway diesel fuel (24.4 cents per gallon), sell it at the aviation jet fuel tax rate (21.9 cents per gallon), and obtain a refund from the Internal Revenue Service (IRS) for the 2.5 cents per gallon difference. NATA's efforts to fight the fuel fraud provision have resulted in the elimination of this controversial tax procedure. The refund process has drawn extensive criticism from the general aviation community since its enactment due to the administrative burden placed on aviation fuel retailers in complying with the regulations.
“Obviously, we are very disappointed that the Senate was not able to approve their FAA reauthorization bill over the last week,” Coyne stated. “We are hopeful that as the June 30th expiration looms the Senate will get this bill back on track and passed as quickly as possible.”
"While the bill has been derailed, I would like to thank Senate Aviation Subcommittee Chairman John Rockefeller (D-WV), Ranking Member Kay Bailey Hutchison (R-TX), Senate Finance Committee Chairman Max Baucus (D-MT), and Ranking Member Charles Grassley (R-IA) for their leadership in brokering a compromise to get the measure on the Senate floor for consideration,” Coyne concluded. “NATA and its members strongly encourage all members of the Senate to pass this important legislation, and will continue to press for a long-term measure that is void of user fees and repeals the onerous fuel fraud tax.”
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NATA, the voice of aviation business, is the public policy group representing the interests of aviation businesses before the Congress and federal agencies.
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The National Air Transportation Association (NATA) has been the voice of aviation business for more than 80 years. Representing nearly 3,700 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.