Tax News

CCH (cch.taxgroup.com) reports:

  President Bush on June 30 signed the Federal Aviation Administration Extension Act of 2008 (P.L. 110-253), providing a four-month extension to collect federal aviation excise taxes and fees through September 30, 2008. The last extension of the aviation excise taxes occurred on February 28, 2008, when the president signed the Airport and Airway Extension Act of 2008 (P. L. 110-190). That law will expire at midnight on June 30, 2008.

  Soaring jet fuel prices have driven airlines to increase ticket prices resulting in a larger amount of aviation taxes being collected to fund the Airport and Airway Trust Fund. Excise tax rates remain unchanged in the new law. Extra revenue collected from the aviation taxes will be directed to address problems with airport congestion and airport runway improvements.

  By Paula Cruickshank, CCH News Staff