Airway Trust Fund Bill to Extend Domestic Cargo Tax, Etc. Ordered Reported
On March 16, 2011, the House Ways and Means Committee ordered reported without amendment H.R. 1034, in order to “provide a clean extension of the Airport and Airway Trust Fund authority and of the associated excise taxes at their current rates, through September 30, 2014”.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Most Trust Fund Excise Taxes Scheduled to Expire After March 31, 2011
According to the House Joint Committee on Taxation (JCT), all Airport and Airway Trust Fund excise taxes, except the 4.3 cents per gallon tax on aviation fuels (which is permanent), are scheduled to expire after March 31, 2011. H.R. 1034 would extend the taxes beyond March 31, 2011.
Excise Taxes Include Domestic Air Cargo (Freight) Transportation Tax
The JCT states that the excise taxes imposed to fund the Airport and Airway Trust Fund include a tax on air cargo (freight) transportation of 6.25% of the amount charged for domestic transportation; no tax is imposed on international cargo transportation. (This tax applies only to transportation that both begins and ends in the U.S.)
House Joint Committee on Taxation description of H.R. 1034 available here
Chairman Camp’s opening statement available here
H.R. 1034 (as introduced) available here (no amendments were made during mark up)