Today, the Senate is expected to pass the House version of the continuing resolution. Once the bill is passed, DOT Secretary LaHood will use his authority to waive the cuts to rural airport funding that the Senate refused to pass.
While this solution was needed to ensure a healthy and safe air system, it does nothing for a long term re-authorization bill. In September, Congress will once again be faced with making hard choices to produce a long term re-authorization bill. If they can't, then a 22nd extension will be needed and I am not sure finding a loophole will solve the problem.
What does this mean for travel managers?
This is all tentative, but Hill sources tell GBTA that since the House extension was drafted before the taxes lapsed, the bill signed by the President will reinstate taxes as of July 23rd. In anticipation of this possibility, the Senate Finance Committee and the House Ways and Means Committee are working to get an agreement ensuring that the taxes are not imposed retroactively and the word is that they are working to ensure taxes are not imposed on passengers retroactively.
To that end, the appropriate Committee leaders are drafting a letter directing the IRS to issue guidance not to enforce the collection of taxes for transportation purchased during the lapse, as well as stating that the effective date of the reinstatement will be 3 days after enactment.
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