Jet Fuel Tax Sunset Reinstated
The Senate Finance Committee has fixed a legislative error and a sunset clause on the tax on jet fuel has been reinstated. According to the National Business Aviation Association, the taxation of jet fuel was moved from one legislative section to another. During the move, the clause ending the 21.8 cent-per-gallon tax on Sept. 30, 2007, was inadvertently omitted. The sunset clause is now back on the books, leaving only a 4.3 cent-per-gallon tax as permanent. Some operators can also expect some small tax breaks thanks to amendments approved by the committee. Crop-dusters can now claim tax rebates on fuel used to travel from farm to farm and they don't have to get a letter from each farmer proving the work was done. Seaplane operators won't have to pay commercial cargo and passenger tax as long as they take off and land on waterways that don't get aid from the airport and airway trust fund. Also, the committee overturned an IRS ruling that forced small sightseeing operators to collect a ticket tax.