[Congressional Record Volume 155, Number 81 (Tuesday, June 2, 2009)]
[Extensions of Remarks]
[Pages E1280-E1281]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    FAA REAUTHORIZATION ACT OF 2009

                                 ______
                                 

                               speech of

                         HON. PATRICK J. TIBERI

                                of ohio

                    in the house of representatives

                         Thursday, May 21, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 915) to 
     amend title 49, United States Code, to authorize 
     appropriations for the Federal Aviation Administration for 
     fiscal years 2009 through 2012, to improve aviation safety 
     and capacity, to provide stable funding for the national 
     aviation system, and for other purposes:

  Mr. TIBERI. Mr. Chair, I am submitting the exchange of letters 
between Ways and Means Committee Chairman Charles B. Rangel, 
Representative John B. Larson and myself regarding the tax treatment of 
fractionally-owned aircraft.''

                                     House of Representatives,

                                     Washington, DC, May 21, 2009.
     Hon. Charles B. Rangel,
     Chairman, Committee on Ways & Means, Longworth House Office 
         Building, Washington, DC.
       Dear Chairman Rangel: We write to you regarding the tax 
     treatment of fractionally-owned aircraft and ask that you 
     carefully consider this issue as you continue work on H.R. 
     915, the FAA Reauthorization Act of 2009.
       Under current law, fractional aviation is treated as 
     commercial aviation for taxation purposes. However, the 
     Federal Aviation Administration treats fractional aviation as 
     non-commercial, general aviation operations for regulatory 
     purposes. We believe that the current Federal tax law should 
     be modified so that, going forward, it properly reflects this 
     regulatory treatment. In addition, we recommend that an 
     appropriate adjustment

[[Page E1281]]

     in the aviation fuel excise taxes be placed on the fractional 
     aviation community. It is important to note that both of 
     these recommendations are fully supported by the fractional 
     aviation community and are consistent with the agreement 
     reached on this issue last year by the Senate Finance and 
     Commerce Committees.
       We had originally hoped to raise this issue during the 
     Committee's mark-up on the aviation tax provisions of the FAA 
     Reauthorization Act of 2009. In the absence of this 
     opportunity, we ask for your commitment to continue to work 
     with us on this issue as this legislation moves forward.
           Sincerely,
     Patrick J. Tiberi.
     John B. Larson.
                                  ____
                                  
                                         House of Representatives,


                                  Committee on Ways and Means,

                                     Washington, DC, May 21, 2009.
     Hon. John B. Larson,
     House of Representatives,
     Washington, DC.
       Dear Congressman Larson: Thank you for writing me to 
     express your interest in the tax treatment of fractionally-
     owned aircraft operations. My office has been contacted on 
     this issue as well. In the last Congress, Ms. Tubbs Jones 
     supported changing the tax treatment of these operations from 
     commercial to non-commercial aviation before she passed away 
     and I appreciate your efforts to take up this issue in her 
     place. Last year, the Senate Finance and Commerce Committees 
     reached an agreement on this matter when the Senate 
     considered the FAA reauthorization bill. The Senate never 
     completed action on that bill so we were unable to consider 
     it in conference before the end of the Congress.
       This year, we had a very brief window between the 
     Committee's hearing on aviation taxes and floor action. To 
     accommodate that schedule, we chose to bring the bill to the 
     floor without a mark-up of the revenue title. In those 
     circumstances, I felt that it was not fair to Committee 
     members for the title to include new material and thus, after 
     consulting with our Ways and Means colleagues, we opted to 
     move a revenue title whose substance is identical to that 
     passed by the House in the last Congress.
       I want to thank you for cooperating in that effort. 
     Unfortunately, that process made it impossible for us to give 
     the tax treatment of fractionally-owned aircraft the 
     attention and consideration it deserves. Accordingly, I would 
     like to indicate that our failure to address the matter in 
     the FAA bill is not the last word on the matter. If the 
     Senate acts on the bill, we will have a conference committee. 
     And there is a strong possibility that the Senate may include 
     provisions related to fractional operations in its bill. At 
     this point, I am not aware of any opposition to the proposal 
     but believe we need to take a closer look to verify that 
     there are no objections to or problems with changing the tax 
     treatment of fractionally-owned aircraft operations. I have 
     asked my staff to take a closer look at the issue and promise 
     to keep working with you as this legislation moves forward.
           Sincerely,
                                                Charles B. Rangel,
     Chairman.
                                  ____

                                         House of Representatives,


                                  Committee on Ways and Means,

                                     Washington, DC, May 21, 2009.
     Hon. Patrick J. Tiberi,
     House of Representatives,
     Washington, DC.
       Dear Congressman Tiberi: Thank you for writing me to 
     express your interest in the tax treatment of fractionally-
     owned aircraft operations. My office has been contacted on 
     this issue as well. In the last Congress, Ms. Tubbs Jones 
     supported changing the tax treatment of these operations from 
     commercial to non-commercial aviation before she passed away 
     and I appreciate your efforts to take up this issue in her 
     place. Last year, the Senate Finance and Commerce Committees 
     reached an agreement on this matter when the Senate 
     considered the FAA reauthorization bill. The Senate never 
     completed action on that bill so we were unable to consider 
     it in conference before the end of the Congress.
       This year, we had a very brief window between the 
     Committee's hearing on aviation taxes and floor action. To 
     accommodate that schedule, we chose to bring the bill to the 
     floor without a mark-up of the revenue title. In those 
     circumstances, I felt that it was not fair to Committee 
     members for the title to include new material and thus, after 
     consulting with our Ways and Means colleagues, we opted to 
     move a revenue title whose substance is identical to that 
     passed by the House in the last Congress.
       I want to thank you for cooperating in that effort. 
     Unfortunately, that process made it impossible for us to give 
     the tax treatment of fractionally-owned aircraft the 
     attention and consideration it deserves. Accordingly, I would 
     like to indicate that our failure to address the matter in 
     the FAA bill is not the last word on the matter. If the 
     Senate acts on the bill, we will have a conference committee. 
     And there is a strong possibility that the Senate may include 
     provisions related to fractional operations in its bill. At 
     this point, I am not aware of any opposition to the proposal 
     but believe we need to take a closer look to verify that 
     there are no objections to or problems with changing the tax 
     treatment of fractionally-owned aircraft operations. I have 
     asked my staff to take a closer look at the issue and promise 
     to keep working with you as this legislation moves forward.
           Sincerely,
                                                Charles B. Rangel,
     Chairman.

                          ____________________