NATA Statement In Support Of Tiberi Aircraft Management Services Legislation

Washington, DC, September 25, 2015 – Yesterday, Representative Pat Tiberi (R-OH) reintroduced legislation (H.R. 3608) clarifying that aircraft management services are not subject to air transportation taxes. The legislation is in response to a March 2012 IRS Chief Counsel opinion that concluded aircraft owners employing aircraft management services that allow 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 opinion on hold pending further clarifying regulations.  Similar legislation (H.R. 5382) was introduced in the 113th Congress. 

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

"NATA appreciates Representative Tiberi’s introduction of this bipartisan legislation clarifying that aircraft management services are not subject to federal air transportation taxes.  This is an important piece of legislation for numerous small aviation businesses that are vulnerable to potentially enormous tax assessments.  Representative Tiberi and the legislation’s original cosponsors recognize the imposition of such taxes represents nothing more than double-taxation on aircraft owners who may seek to defray the costs associated with ownership through the chartering of the aircraft when it is not in use.  We look forward to working with Representative Tiberi and the other original cosponsors to enact this common sense legislation.”