A Capitol View Continued from page 7 FCC / FAA LICENSE ASSISTANCE ASRI provides complete management of aeronautical en route and other aviation- related radio licenses including: • UNICOM • Land Mobile • Aviation Terminal Use • Aeronautical Utility Mobile In dynamic environments, it is easy to lose track of radio station license expiration dates, construction deadlines, and tower regulations— that could result in a violation of FCC rules. ASRI handles all aspects of radio licensing so that you can focus on your business Aviation Spectrum Resources Inc. 180 Admiral Cochrane Drive Suite 300 Annapolis, MD 21401 410-266-6030 [email protected] www.asri.aero AIRPORT & AVIATION LAW Our experienced attorneys represent FBOs, MROs, flight schools, aircraft sellers and buyers, avionics suppliers, ground handlers, as well as Part 91, Part 121, Part 125, Part 135 and Part 145 operators on a broad range of regulatory, commercial, business, and technical matters at airports throughout the U.S. and internationally. We assist clients with acquisitions and divestitures, aircraft sales transactions, negotiations with airports, insurance defense matters, Part 13 and 16 matters, corporate and commercial matters, trademark issues, litigation (including FAA, DOT, and TSA enforcement actions), bankruptcy and creditors’ rights, and government relations. Contact us today to arrange a consultation with our multi-state AIRPORT LAW & AVIATION SERVICES PRACTICE GROUP P: (516) 364-1095 F: (516) 364-0612 [email protected] www.mcbreenkopko.com 8 Trust Fund. The policy change was justified by a belief that the 2.5-cent per gallon tax difference between the highway diesel and jet fuel tax rates somehow gave truckers incentive to use jet fuel. This ignored the fact that in 2005 the average price of highway diesel was $1.30 less than jet fuel. Today, the dis- parity between those prices is even greater. NATA has always disputed the policy justification for the 2005 change in law and argued its implementation is costing the Aviation Trust Fund hundreds of millions in annual revenues. To tackle this long-standing issue, NATA requested the GAO report from lawmakers to review the policy justification and its impact to the Aviation Trust Fund. NATA supporter, Representative Mike Pompeo (R-KS), accelerated work on the issue by mandating the GAO report during deliberations on the 2015 highway bill. The report has validated all of NATA’s concerns, concluding the diversion of funds stemming from the 2005 change in tax law has resulted in a loss to the avia- tion fund of between one and two billion dollars intended for airport improvements and system modernization. The report also shows there was never much utility to the provision, either then or today, and validates our assertion that using jet fuel in modern diesel engines is harmful to those engines. The report is a very important first step to a more rational aviation tax policy. Make no mistake about it; repeal of the 2005 provision will not be easy. We requested this report because previous attempts to reclaim these revenues failed due to a lack of quantifiable data by a respected third party. The highway lobby on Capitol Hill is a powerful one, and we should not expect those interests to willingly cede money back to the Aviation Trust Fund as available funding for ground infrastructure is already woefully inadequate to meeting the nation’s needs. We can expect to hear the usual rhetoric that “rich jet owners” should be willing to forgo these dollars to build highways instead of new runways, instrument ap- proaches, or additional air traffic control towers. Rest assured, NATA will make the case to ensure that taxes imposed on aviation are directed to their intended use. While the most recent legislative battles are in the “win” column for NATA members, there are more challenges ahead. We will continue to keep you apprised as events unfold and hope you will continue to engage with your elected officials. Your engagement made a big difference in 2016, but we ask you to maintain your resolve because our opponents are not going away. Aviation Business Journal | 3rd Quarter 2016
