AEA Today (posted: April 18, 2012)
AEA Member Call to Action
Urge Congress to Repeal Fuel Fraud Provision in Highway Bill
What's the Issue?
The Aircraft Electronics Association urges its U.S. members to contact their member of Congress in the U.S. House of Representatives and request they sign a letter in support of a provision in H.R. 7, the American Energy and Infrastructure Jobs Act, or the Highway Bill of 2012, which would repeal the fuel fraud provision.
House General Aviation Caucus Co-Chairmen Sam Graves (R-MO) and John Barrow (D-GA), along with other members of Congress being added hourly, have sponsored a letter to Dave Camp (R-MI), chair of the Committee on Ways and Means. It is important to obtain as many Congressional signatures as possible by Friday, April 20, as H.R. 7 is scheduled to be on the floor of the U.S. House of Representatives early next week.
Click here to read the letter from Graves and Barrow to Chairman Camp.
BECAUSE TAXES COLLECTED FROM AVGAS SALES ARE BEING DIVERTED TO THE HIGHWAY FUND INSTEAD OF THE AIRPORT AND AIRWAY FUND!
Section 11161 of H.R. 3, the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy of Users (SAFETEA-LU), which passed in the 109th Congress, altered the collection of fuel taxes for business and general aviation fuel providers. This change was made amid concerns that highway truck drivers were buying aviation jet fuel and mixing it with fuel from another substance to make it operable in highway trucks, thus avoiding the purchase of highway diesel fuel and its higher taxes. However, there is no evidence of widespread fuel fraud of this nature.
In addition, since 2005, nearly all taxes collected for non-commercial jet fuel used in general aviation have been deposited in the Highway Trust Fund instead of the Airport and Airway Trust Fund. This diversion of aviation fuel taxes has cost the Airport and Airway Trust Fund approximately $50 million annually since the enactment of SAFETEA-LU, depriving it of funds needed to enhance safety and efficiency.
The AEA asserts that it is imperative that all tax revenue on jet fuel used in aviation be deposited in the Airport and Airway Trust Fund and supports the inclusion of a provision in H.R. 7 that would repeal the fuel fraud provision.
Contact Your Member of Congress
to contact your representative in Congress today, and urge them to sign the letter of support drafted by Congressmen Graves and Barrow.