Senate Tax Plan Includes Exemption for Private Jet Management
Senate Tax Plan Includes Exemption for Private Jet Management
When the Internal Revenue Service decided that aircraft management businesses should also be subject to the ticket tax, the decision prompted an immediate backlash
from the aviation industry, which said management companies would pass along the cost of the tax to private aircraft owners in the form of steeper fees.
doesn’t, either,” said Jamie Walker, chief executive of Jet Linx Aviation, a management company
that offers services for more than 100 jets at 14 locations across the country.
Until several years ago, owners of private aircraft using planes for personal or business travel were free from this so-called ticket tax.
The measure exempts private plane management fees from taxation,
and relates to a 7.5 percent excise tax paid by commercial airlines on each seat they sell.
And the provision, part of the Senate Republicans’ tax plan under consideration this week, is expected by one tally
to cost federal coffers $500,000 over 10 years, an infinitesimally small amount in congressional bookkeeping.
They did, however, pay management companies to store and fuel their jets, hire crew, train pilots, schedule flights and comply with safety standards.
When the Internal Revenue Service decided that aircraft management businesses should also be subject to the ticket tax, the decision prompted an immediate backlash
from the aviation industry, which said management companies would pass along the cost of the tax to private aircraft owners in the form of steeper fees.
doesn’t, either,” said Jamie Walker, chief executive of Jet Linx Aviation, a management company
that offers services for more than 100 jets at 14 locations across the country.
Until several years ago, owners of private aircraft using planes for personal or business travel were free from this so-called ticket tax.
The measure exempts private plane management fees from taxation,
and relates to a 7.5 percent excise tax paid by commercial airlines on each seat they sell.
And the provision, part of the Senate Republicans’ tax plan under consideration this week, is expected by one tally
to cost federal coffers $500,000 over 10 years, an infinitesimally small amount in congressional bookkeeping.
They did, however, pay management companies to store and fuel their jets, hire crew, train pilots, schedule flights and comply with safety standards.
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