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NATA Statement In Support Of Brown-Portman Aircraft Management Services Legislation

NATA Statement In Support Of Brown-Portman Aircraft Management Services Legislation

Washington, DC, September 30, 2015 –Yesterday, Senators Sherrod Brown (D-OH) and Rob Portman (R-OH) introduced legislation (S.2092) clarifying that aircraft management services are not subject to air transportation taxes.  The Brown-Portman bill is the companion legislation to H.R. 3608 introduced in the House last week by Representative Pat Tiberi (R-OH). The legislation is in response to a March 2012 IRS Chief Counsel opinion that concluded aircraft owners employing aircraft management services and allowing the use of the aircraft for occasional charter operations should assess the 7.5 percent commercial ticket tax on amounts paid for those management services.  In May 2013, the IRS put the assessments on hold pending further clarifying regulations.

The following is a statement by National Air Transportation Association President and CEO Thomas L. Hendricks: 

"NATA appreciates the leadership of Senators Brown and Portman in addressing this issue of great importance to aviation businesses. Clarifying that aircraft management services are not subject to federal air transportation taxes will prevent the double-taxation of aircraft owners who seek to defray the costs associated with ownership through the chartering of the aircraft. We look forward to working with Senators Brown and Portman and their House counterparts to enact into law this common sense legislation.”

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NATA, the voice of aviation business, is the public policy group representing the interests of aviation businesses before Congress and the federal agencies.
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