BUSINESS AVIATION TAX'S
October 2009
JET FUEL TAX PROPOSED INCREASE June 1, 2009
James Oberstar (D-Minn.) states “Therefore, I recommend that the Committee on Ways and Means increase the general aviation jet fuel tax rate from 21.8 cents per gallon to 35.9 cents per gallon, and increase the aviation gasoline tax rate from 19.3 cents per gallon to 24.1 cents per gallon".
Conklin & de Decker calculate an additional 20.0 cents per gallon will be incurred if a carbon tax is implemented. The carbon tax is an estimate only. The tax will be higher as the Obama administration has recently suggested, September 2009.
AIR CHARTER - F.E.T. (transportation of person's tax)
In addition to fuel tax air charter customers pay an F.E.T. of 7.5% on a charter flights value conducted within the United States. As an example the tax on a $100,000 charter flight is $7,500. Additionally a $3.50 fee per person is taxed on each passenger segment.
AVIATION TAX SUMMARY
The taxes levied have "0" direct benefit to the business purpose of a private/charter flight.
Example: Five (5) hour flight in a private jet that burns 400 gallons per hour. Charter cost $100,000.
DIRECT OPERATING TAX COST
| TAX |
COST |
| JET FUEL PER GALLON TAX - .359 cents per gallon |
718 |
| F.E.T. @ 7.5% |
7,500 |
| CARBON TAX (proposed minimum) |
400 |
| TOTAL DIRECT FUEL and F.E.T. for flight |
$8,618 |
|
|
Prior to the aircraft departing the above tax's may be anticipated. There is a cost to use the ATC system. U.S. transportation policy discussions center on, "user fees and governments obligation to promote commerce and jobs with general tax revenues". Either position may be accomplished separately. Compromising and using both policies is not acceptable from the capitalist viewpoint.
AIR GLOBAL ONE® is a comprehensive aviation service company based in Carlsbad, California.
Thank you for your aviation business.
LINKS
AIR CHARTER
CARGO AIRCRAFT
GULFSTREAM IV CONTRACT PILOT
AIRCRAFT LEASE SALES
CARBON TAX (effect on aviation)
|
