Airlines for America (A4A) has urged New Jersey lawmakers to reject proposed legislation to increase the effective rate of the jet fuel tax, making it almost 18 times its current level. A4A has warned that any attempt to divert jet fuel tax revenue to fund roads, highways, bridges or any other non-aviation infrastructure projects, violates federal law.
“Commercial aviation is vital to the health of New Jersey’s economy, supporting nearly 150,000 jobs in New Jersey and driving US$22.1 billion in economic activity,” A4A Senior Vice President and General Counsel, David Berg, said. “Efforts to hike the effective jet fuel tax rate will jeopardise jobs, air service options and the affordability of airfare and shipping for New Jersey families and businesses – while leaving the state at a significant competitive disadvantage.”
Berg also argued that failure to comply with the Federal Aviation Administration’s (FAA) revenue use policy could lead to serious sanctions imposed by FAA or the US Department of Transportation (DOT), including the withholding of federal grant dollars to improve airport and highway infrastructure.
“Funding roads, bridges or any other non-aviation related project on the backs of airline customers is nothing more than a bait and switch, and a clear violation of federal law,” said Berg. “We urge lawmakers reject any attempt to saddle airlines, our employees and their own constituents with this unnecessary jet fuel tax hike.”
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/refining/20062016/airlines-for-america-urges-new-jersey-lawmakers-to-oppose-illegal-tax-hike-3542/