Jet fuel Tax Bill Passes NJ General Assembly – Potential Impact on UAL
February 2, 2019
As you may recall, earlier this year, MEC President Ken Diaz wrote a letter to the New Jersey General Assembly opposing New Jersey bill A4392, which sought to increase taxes on jet fuel purchased in the state. Unfortunately, the bill passed the New Jersey General Assembly on Thursday by a 42-31 vote, receiving just one vote above the minimum it needed to pass.
Employees sent additional letters to their assembly members in the past two days opposing the bill but, despite our efforts, the bill now goes back to the Senate for a concurrence vote before advancing to Governor Phil Murphy for signature.
United continues to maintain this bill illegally proposes to use jet fuel tax revenue to fund non-aviation infrastructure projects, which is a clear violation of both federal law and the Federal Aviation Administration's (FAA) revenue use policy.
If enacted, the law could result in a $20 million annual cost increase for United.
United will continue to stand firm in opposition to the bill and will urge Governor Murphy to veto it if it reaches his desk. This is yet another example of why our involvement in Government Affairs issues affecting our Company is critical to our democratic process, the health of our airline and the stability of our career and continued employment. Stay tuned to local communications and Flying Together for updates.