NATA, NBAA Ask For Mercy From IRS On Fuel Tax

Under changes recently enacted in Congress, the Internal Revenue Service can collect an additional 24.4 cents per gallon in taxes on Jet A aviation fuel, apparently due to concerns that highway operators are avoiding taxes on diesel fuel by buying Jet A to burn in their trucks. Thus, aviation users, unless they are buying the fuel under certain circumstances that are not yet clearly defined, must also pay the extra 24.4 cents and then apply for a refund. If it seems a bit like guilty till proven innocent, well, the National Air Transportation Association (NATA) and National Business Aviation Association (NBAA) don’t like it either. They’ve asked the IRS to delay implementing the tax changes until the whole process is clearly explained. Meanwhile, NBAA and NATA have formed a working group along with the General Aviation Manufacturers Association, tax experts, FBOs, air-charter operators and private aircraft owner-operators to work on strategies to mitigate the effects of the change. According to NATA, the authors of this provision believed that a significant amount of aviation fuel is being fraudulently diverted to highway truck use, but there is little evidence of such diversion. The new rules are due to take effect Oct. 1.