Senate Tax Plan Includes Exemption for Private Jet Management<br />When the Internal Revenue Service decided that aircraft management businesses should also be subject to the ticket tax, the decision prompted an immediate backlash<br />from the aviation industry, which said management companies would pass along the cost of the tax to private aircraft owners in the form of steeper fees.<br />doesn’t, either,” said Jamie Walker, chief executive of Jet Linx Aviation, a management company<br />that offers services for more than 100 jets at 14 locations across the country.<br />Until several years ago, owners of private aircraft using planes for personal or business travel were free from this so-called ticket tax.<br />The measure exempts private plane management fees from taxation,<br />and relates to a 7.5 percent excise tax paid by commercial airlines on each seat they sell.<br />And the provision, part of the Senate Republicans’ tax plan under consideration this week, is expected by one tally<br />to cost federal coffers $500,000 over 10 years, an infinitesimally small amount in congressional bookkeeping.<br />They did, however, pay management companies to store and fuel their jets, hire crew, train pilots, schedule flights and comply with safety standards.
