A change in tax law in 2005 has resulted in a loss of $1 billion to $2 billion to the Airport and Airway Trust Fund, the Government Accountability Office said in a report released today. "The amounts lost to the Trust Fund as revealed today by the GAO are simply staggering," said Andrew Priester, chairman for NATA. "Consider how many new runways, instrument approaches, or additional air traffic control towers could have been built, had this money been available for its intended purpose."The 2005 law directs fuel taxes directly into the Highway Trust Fund, and then vendors of aviation fuel must file paperwork to ensure the funds are transferred to the airport and airway fund. However, the process for vendors to file the paperwork is time-consuming, the GAO found, and the refunds they can qualify for are too small to provide an incentive. As a result, the fund transfers aren't being made.
This is a companion discussion topic for the original entry at https://www.avweb.com/recent-updates/business-military/report-airport-fund-lost-up-to-2-billion