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No Fuel Tax Holiday for Private Flyers


Fueltruck As the presidential candidates duke it out over the merits of a proposed a proposed federal gas tax holiday this summer, private jet flyers will be disappointed to learn that they won’t be partaking in any moratorium. As we’ve previously reported, the cost of Jet-A has tracked closely with the price of gasoline motorists pay at the pump. Jet fuel and gasoline are each petroleum products— though refined to varying levels— whose prices are determined by the same supply mechanisms.

But while it might seem logical that any tax relief extended to motorists would include flyers as well, its important to note that the taxation of the two fuels operates under entirely separate sections of the law. The U.S. federal gasoline tax of 18.3 cents per gallon, and state taxes which average 28.6 cents per gallon, are dedicated primarily to the preservation of roads and bridges. Taxes on aircraft fuel are a federal excise tax of 21.9 cents per gallon which goes primarily towards funding for air traffic control operations and airport maintenance by the FAA. Commercial operators, including charter jet travel providers, however only pay a tax of 4.4 cents per gallon.

A bill, currently under consideration in the Senate, aims to lighten the burden on commercial providers by increasing noncommercial jet fuel taxes up to 36 cents per gallon. So like most drivers in this country, jet flyers are likely to be paying more at the pump.

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