By Briana Vannozzi
Correspondent
Commercial airlines are taking off with millions of dollars thanks to tax loopholes. That’s the charge from New Jersey Sen. Ray Lesniak. He wants to revamp the amount of jet fuel taxes paid by airliners — especially those coming in and out of Newark Liberty International Airport.
“They only pay for what they consume in New Jersey. When a motorist fills up his or her tank they pay for the entire tank. The airlines are getting away with the little bit that they use and consume within the state,” he said.
Jet fuel is subject to a 4-cent petroleum products gross receipts tax. According to New Jersey’s Division of Taxation, it’s based on the portion of the flight that occurs in New Jersey. What does that mean? A flight that originates in New Jersey and lands out-of-state is charged just for the time taxiing, taking off and flying through New Jersey airspace.
Critics of the current legislation say this is the equivalent of only being charged a tax on the amount of fuel it takes to pull out of your driveway.
“This is losing the state of New Jersey $50 million a year — $50 million a year that could go to improvements at the airport, the extension of the PATH for economic development,” Lesniak said.
“It brings up the fuel tax surcharge to the same level as it is in New York state and the airlines need to pay their fair share,” said Kevin Brown, vice president of 32BJ SEIU.
A spokesperson for Airlines For America, an industry lobbying group, said in a statement, “A4A opposes any attempt to saddle airlines, airline employees and customers with higher taxes that will unnecessarily make it more expensive to fly, jeopardize jobs and increase the cost of doing business in New Jersey.”
A similar bill is being introduced by the New York Legislature. Taxes raised would be used solely for airport improvements — federal law precludes jet fuel tax from being used in general transportation funding. Workers from labor union 32BJ SEIU rallied to support the change and called for corporate responsibility.
“They have us working in unsafe conditions. They have us on planes that are about 90 degrees inside with no air. So, I feel like they need to give us more. They’re making record profits. Why aren’t we seeing any of this money? All we’re seeing is $10.10 an hour,” said PrimeFlight airline cleaner Destiny Diggs.
“The passengers are paying exorbitant bag fees, change fees, extra space in your seat fees and the airlines are making billions,” Brown said.
This bill comes as a statewide gas tax for motorists is being introduced. Lesniak says pain at the pump needs to be shared.