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Americans For Tax Reform Backs Airport Tax Bill

by Mike Godfrey, Tax-News.com, Washington

27 June 2017


Americans for Tax Reform has urged the House Transportation and Infrastructure Committee to support a bill that would tighten the rules on the imposition of tax on airport users.

The Davis-Cohen amendment to the House FAA Reauthorization Bill would prevent taxes and fees from being levied at commercial service airports if they are to be used for non-aviation-related projects outside the airport.

It is said that state and local governments have taken advantage of a loophole in the FAA Reauthorization Bill by applying the burden of tax not only to airport users but all similar entities within that taxing jurisdiction, such as rental car providers.

ATR said that the amendment bill, proposed by Representatives Rodney Davis (R-IL) and Steve Cohen (D-TN), is intended to ensure that the FAA Authorization Act of 1994 properly precludes states and local governments from imposing discriminatory taxes on airport users to fund local, unrelated infrastructure.

In support of the bill, the ATR said the "diversion of revenue generated at airports is wholly inequitable and deprives America's airports of revenue that should be used solely for aviation-related projects and infrastructure."

TAGS: tax | business | aviation | fees | United States | Tax

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