Airport and Airway Trust Fund: Less Than Half of Noncommercial Jet Fuel Tax Receipts Are Transferred

The research questions of this report were to examine what is known about (1) ultimate vendors of jet fuel used in noncommercial aviation, (2) the extent to which the Airport and Airway Trust Fund has been credited for sales of jet fuel used for noncommercial aviation, and (3) the extent to which jet fuel has been diverted for nonaviation purposes. In general, the Government Accountability Office (GAO) reviewed relevant statutes, regulations and prior GAO and Inspector General reports, analyzed data and interviewed federal officials from the Department of Treasury, the Department of Transportation, and the Internal Revenue Service (IRS); and interviewed 17 industry stakeholders, including national aviation organizations, such as the National Air Transportation Association and the National Business Aviation Association, and jet fuel vendors. GAO found that (1) the total number of potentially registerable ultimate vendors of jet fuel used in noncommercial aviation is unclear, but is likely greater than the number that have registered based on industry information. (2) Since fiscal year 2006, between $1 billion and $2 billion, or more than half of tax receipts for sales of noncommercial jet fuel, have not been transferred into the Airport and Airway Trust Fund from the Highway Trust Fund, based on analysis of Federal Aviation Administration (FAA) and IRS data. (3) Reported instances of jet fuel diversion for nonaviation purposes are rare and economic and technological disincentives may further discourage such activity.

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Figures; References; Tables;
  • Pagination: 41p

Subject/Index Terms

Filing Info

  • Accession Number: 01608568
  • Record Type: Publication
  • Report/Paper Numbers: GAO-16-746R
  • Files: TRIS
  • Created Date: Aug 8 2016 1:36PM