Private Jet Tax Benefit Loop Hole

(July 29, 2011) On Friday, July 22, 2011 the FAA multiyear funding legislation expired after many extensions from the 2007 bill. Effectively, the Federal Excise Taxes, including the 7.5% tax and the Segment Fees, collectively the “F.E.T.” charged hourly for the commercial use of a private jet cannot be assessed until the legislative issue is resolved by the Federal Government.

Once the issue is resolved, there is the potential the Government will make all F.E.T. during this expiration period retroactive to July 22nd. With this in mind, Jet Linx will continue to collect an amount that is equal to the F.E.T. amount that was previously assessed with the assumption that all monies paid will either be remitted to the Government if retroactively assessed, or credited to your account if the Government does not retroactively apply the tax.

If you have any questions, please contact us at any time.