ASK HOUSE AND SENATE HIGHWAY BILL CONFEREES TO REPEAL FUEL FRAUD TAX TODAY!
April 26, 2012
What's at Issue
NATA is requesting its members to contact Members of Congress serving on the conference committee established to resolve differences between the House and Senate versions of the Highway Bill and urge them to support repeal of the onerous fuel fraud tax.
Why It's Important
The conference committee is one of the last steps in the legislative process before an agreement is finalized on the Highway Bill and it is approved by both the House and Senate and then signed into law by the President.
Members of the House-Senate Conference Committee on H.R. 4348 include:
U.S. House of Representatives Conferees and Staff:
Jaime Herrera Beutler (R-WA) - Chad Ramey, firstname.lastname@example.org
Rob Bishop (R-UT) - Wayne Bradshaw, email@example.com
Timothy Bishop (D-NY) - Mark Copeland, firstname.lastname@example.org
Earl Blumenauer (D-OR) - David Skillman, email@example.com
Leonard Boswell (D-IA) - Ross Maradian, firstname.lastname@example.org
Corrine Brown (D-FL) - Nick Martinelli, email@example.com
Larry Bucshon (R-IN) -Teresa Buckley, firstname.lastname@example.org
Dave Camp (R-MI) - Adam Pradko, email@example.com
Shelley Moore Capito (R-WV) - Andrew Stasiowski, firstname.lastname@example.org
Jerry Costello (D-IL) - Sarah Blackwood, email@example.com
Chip Cravaack (R-MN) - Ian Foley, firstname.lastname@example.org
Rick Crawford (R-AR) - Ted Verrill, email@example.com
Elijah Cummings (D-MD) - Angela Hanks, firstname.lastname@example.org
Peter DeFazio (D-OR) - Karmen Fore, email@example.com
John Duncan (R-TN) - Don Walker, firstname.lastname@example.org
Ralph Hall (R-TX) - Jessica Carter, email@example.com
Richard Hanna (R-NY) - Andrew Brady, firstname.lastname@example.org
Doc Hastings (R-WA) - Justin Prosser, email@example.com
Eddie Bernice Johnson (D-TX) - Caryn Compton, firstname.lastname@example.org
James Lankford (R-OK) - Brittnee Preston, email@example.com
Edward Markey (D-MA) - William Spring, firstname.lastname@example.org
John Mica (R-FL) - Brian Waldrip, email@example.com
Jerrold Nadler (D-NY) - Lisette Morton, firstname.lastname@example.org
Del. Eleanor Holmes Norton (D-DC) - Robert White, email@example.com
Nick Rahall (D-WV) - Aaron Pritchard, firstname.lastname@example.org
Reid Ribble (R-WI) - Kyle Roskam, email@example.com
Bill Shuster (R-PA) - Stephen Martinko, firstname.lastname@example.org
Steve Southerland (R-FL) - Karen Williams, Karen.email@example.com
Pat Tiberi (R-OH) - Brad Bailey, firstname.lastname@example.org
Fred Upton (R-MI) - Mark Ratner, email@example.com
Henry Waxman (D-CA) - Travis Moore, firstname.lastname@example.org
Edward Whitfield (R-KY) - Taylor Booth, email@example.com
Don Young (R-AK) - Scott Leathard, firstname.lastname@example.org
U.S. Senate Conferees and Staff:
Max Baucus (D-MT) - Tom Lynch, email@example.com
Barbara Boxer (D-CA) - Kyle Chapman, firstname.lastname@example.org
Richard Durbin (D-IL) - Tom Kotarac, email@example.com
Orrin Hatch (R-UT) - John Tanner, firstname.lastname@example.org
John Hoeven (R-ND) - Jessica Yearous, email@example.com
Kay Bailey Hutchison (R-TX) - Landon Hairgrove, firstname.lastname@example.org
James Inhofe (R-OK) - Nathan Reese, email@example.com
Tim Johnson (D-SD) - Todd Stubbendieck, firstname.lastname@example.org
Robert Menendez (D-NJ) - Michael Passante, email@example.com
Bill Nelson (D-FL) - Jenny Solomon, firstname.lastname@example.org
John D. Rockefeller (D-WV) - Pat Bond, email@example.com
Richard Shelby (R-AL) - Andrew_newton@shelby.senate.gov
Charles Schumer (D-NY) - Anne Fiala, firstname.lastname@example.org
David Vitter (R-LA) - Bryan Zumwalt, email@example.com
What to Do
Contact each conferee via email by clicking on the email addresses of each Member of Congress above. Please contact each conferee today, regardless if they are your Member of Congress or not, to request they support repeal of the onerous fuel fraud tax!
NATA members are encouraged to utilize the following talking points and attach the Fuel Fraud White Paper to their emails to conferees or when talking to congressional staff members:
- Prior to October 1, 2005, aviation fuel was taxed at 21.9 cents per gallon (CPG), and the taxes collected were deposited immediately into the Airport and Airway Trust Fund.
- The Highway Bill changed the collection of aviation fuel taxes. Now, aviation fuel is taxed at the same rate as highway diesel fuel, 24.4 CPG, but the fuel provider still only owes 21.9 CPG to the government. It is up to the fuel provider or "ultimate registered vendor" (a term defined in the bill), to request a refund for the 2.5 CPG difference in taxes paid and taxes actually owed.
- The provision mandated that all taxes be deposited into the Highway Trust Fund and only when the operator applies for the refund does the money transfer to the Airport and Airway Trust Fund. When a refund is requested, the operator gets the 2.5 CPG back and the remaining 21.9 CPG is transferred from the Highway Trust Fund to the Airport and Airway Trust Fund. If the operator does not request a refund, all tax money stays in the Highway Trust Fund and the Airport and Airway Trust Fund receives nothing.
- Many operators are not applying for this refund. The Internal Revenue Service has issued limited guidance on the matter, so operators, who have never had to deal with a system of tax refunds, have no idea how to apply for the refund. The term "ultimate registered vendor" is not defined in the bill. While most assume it to be the fixed base operator, that hasn't been officially decided yet. Also, the 2.5 CPG difference is small enough that many operators are simply passing the higher costs along to the consumer, which is resulting in a de facto tax increase.
- This diversion of aviation fuel taxes costs the Airport and Airway Trust Fund approximately $50 million per year. Estimates state that the provision will cost the Airport and Airway Trust Fund close to $500 million over ten years, although that number could rise significantly if more operators do not apply for the refund.
- This provision was included amid concerns that highway truck drivers are purchasing aviation jet fuel and mixing it with another agent to use in their trucks. The aviation industry disputes this claim, noting that there is no documented evidence of this happening on a widespread level.
The national airspace system has been unnecessarily deprived of funds needed to enhance safety and efficiency due to the fuel fraud provision mandating that funds be deposited in the Highway Trust Fund. It is imperative that all taxes on jet fuel, used in aviation, are deposited in the Airport and Airway Trust Fund.
A recent letter sent by 32 members of the U.S. House of Representatives reinforces the association's concerns with this unnecessary and onerous tax on the aviation business community.
The conference committee could meet as early as May 7, but much of the work leading up to the meeting takes place at the staff level starting now. It is critical that NATA members contact Highway Bill Conferees today!
Staff Contact: Eric Byer
Vice President, Government & Industry Affairs