Lawmakers extend aviation taxes through March 31

President Donald Trump has signed into law a short-term Federal Aviation Administration (FAA) reauthorization (H.R. 3823) that extends aviation fuel and ticket taxes through March 30, 2018.

The extensions cover the following taxes:
  • 19.3-cents-per-gallon excise tax rate on noncommercial aviation gasoline
  • 21.8-cents-per-gallon excise tax rate on noncommercial aviation kerosene
  • 7.5% tax on the base ticket price
  • $4.10-per-person domestic segment tax for a single takeoff and landing (indexed for inflation)
  • $18-per-person international travel facilities tax for flights that begin or end in the United States, $9 for a flight that begins or ends in Alaska or Hawaii (indexed for inflation)
  • 6.25% tax on the amount paid for transporting property by air
With the exception of aviation gasoline, the taxes had been set to expire on Sept. 30, 2017. Noncommercial aviation gasoline was set to revert to the 4.3-cents-per-gallon rate imposed on commercial airline fuel.

Dustin Stamper
Director, Washington National Tax Office
T +1 202 861 4144

Shamik Trivedi
Senior Manager, Washington National Tax Office
T +1 202 521 1511

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.