4 ms·

I can't see how they compete when electricity is taxed whilst aviation fuel is untaxed.

• benj111 7y ago
  Why should tax inherently make it uncompetitive? Has untaxed rooftop solar always been cheaper than some other taxed energy source?
• sokoloff 7y ago
  Airline fuel is largely untaxed, but most other aviation fuel is taxed. General aviation 100LL ("avgas") fuel is taxed federally at $0.191/gallon (or $0.335/gallon for certain ownership structures). General aviation jet fuel is taxed at $0.219 (to as much as $0.244) per gallon. Highway fuel is taxed federally at $0.184/gallon (slightly less than avgas). Electric aircraft are not poised to disrupt the jet-fuel burning sector of aviation. The aircraft in this article will be competing against aircraft using taxed fuel (100LL).
  • iancmceachern 7y ago
    Why is airline fuel untaxed?
    • sokoloff 7y ago
      I assume because the feds calculated that they can collect more revenue by taxing elements of the tickets rather than the fuel, but I really don't know. (Note that some states do tax airline jet fuel and some airports assess a flowage fee per gallon [which is for practical purposes equivalent to a sales tax].)
      • benj111 7y ago
        Airline jet fuel duty is covered by international agreements I think, presumably to facilitate trade. I don't know if that also applies to purely domestic use though. Maybe that's how states can impose a tax?