Thirty Two Representatives Sign A Letter To Ways And Means Chair Representative Dave Camp

A group of 32 members of the U.S. House of Representatives has sent a letter to the chair of the House Ways and Means Committee asking for changes in the federal highway bill.

At issue is what the Representatives call "fuel fraud" ... which funnels taxes collected on aviation fuels into the highway fund. The effort is being spearheaded by Representatives Sam Graves (R-MO) (pictured)  and John Barrow (D-GA). In the letter, the Representatives point out that the result of that shift has been that the Highway Trust Fund has been increased at the expense of the Airport and Airway Trust fund, and request that the next highway authorization bill should set that right.

In a statement released Thursday, NADA president and CEO James Coyne praised the efforts of the two congressmen and the others who added their support to the effort. "Since October 1, 2005, the Airport and Airway Trust Fund has been deprived of critical funding because the fuel fraud provision allowed non commercial jet fuel taxes to be deposited into the Highway Trust Fund," Coyne said in the statement. "The IRS process for fuel vendors is voluntary, allowing taxes intended for the Airport and Airways Trust Fund to remain in the Highway Trust Fund. This diversion of aviation fuel taxes has cost the Airport and Airway Trust Fund approximately $50 million annually and is anticipated to cost another $500 million over the next ten years."

Coyne said NATA member companies have been heavily burdened by the IRS fuel vendor process, often resulting in extensive audits and the ultimate decision not to file for the fuel tax refund. "We greatly appreciate the support of all 32 House Members on an issue that is so important to the association's membership and the aviation trust fund."

FMI: http://graves.house.gov, http://barrow.house.gov