FAA's Q&A on FBO's

Due to recent discussions surrounding FBO pricing and fees at Federally obligated airports, the FAA has issued a document as a "basis for discussion between the airport sponsor, the FBO, and aeronautical users on the issue of reasonable access, without unjust discrimination."   See the FAA document here.
  • FAA’s Role in Matters Involving FBOs?
  • The Airport-FBO Relationship: Fees and Reasonableness?
  • Exclusive Rights, Monopoly Powers, and FBO Consolidations?
  • ​What Can an Airport Sponsor Do About Fuel and Ramp Fees?

New IL Sales Tax Return on Aviation Fuel

In anticipation of the legislation required to bring Illinois into compliance with FAA regulations, the Illinois Department of Revenue has developed a new sales tax return (ST-70) for reporting sales of aviation fuel. Although this legislation has not yet passed, the Department has decided to move forward with implementing this new aviation fuel sales tax return.  This is effective with taxes collected December 1, 2017 and reported January 20, 2018.

Please see the FY 2018-13-A Bulletin for more information.

New ​Illinois' Aviation Fuel Tax Legislation

Federal law (49 USC § 47133) requires that "state and local taxes" on aviation fuel be used for airport purposes.  While 5% of our 6.25% State tax is grandfathered, the IATA and IPAA along with the Illinois Department of Transportation and Department of Revenue have been in discussions throughout the year regarding the remaining 1.25% State Tax.  Although Illinois failed to meet its deadline, the expectation is that we have a bill passed at the beginning of the 2018 Legislative Session.

Legislation Highlights:
  • A new fuel tax return will be necessary.
  • The State 1.25% rate will go into a new fund reserved for "airport-related purposes."
  • Each municipality must use its aviation fuel tax revenue for airport related purposes.
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The current point of contention is a proposal to distribute funds based on "enplanements."  The IATA opposes this and has proposed instead to allow a priority rating system determined by IDOT.  We are continuing to work with the State on this issue and hope for swift resolution in the upcoming months. 

Download Summary of IATA 2018 bills. 

A "Special Thank You" to Our 2018 Aviation Conference Sponsors!

CMT Engineering
Hanson
Shell / Eastern Aviation Fuels
Standard Aero
West Star Aviation
Stellar Aviation Group
Airport Lighting
Hutchison Engineering, Inc.
Asphalt Systems, Inc.
Jet Air, Inc.
​Applied Pavement Technology, Inc.

Ameren Illinois
Arrow Energy, Inc
Asphalt Systems, Inc.
AvFuel
DBT Transport
Epic Fuels
​Ehrhardt Aviation
Multi Electric Manufacturing
Poplar Grove Airmotive
PowerLift Hydraulic Doors