NBTA

Northeast Chapter Tour: On the Road with NBTA Government Relations

NBTA’s Government Relations department recently wrapped up a tour to several NBTA Chapters in the U.S. Northeast Corridor, discussing with more than 200 NBTA and Chapter members Washington’s impact on the business travel community and actions corporate travel professionals can take to be heard.

Shane Downey, Assistant Manager, NBTA Government Relations

Stewert Verdery, NBTA Government Relations Consultant

First stop on the tour was Buffalo, New York, where NBTA Government Relations Consultant Stewart Verdery visited with the New York State Business Travel Association to discuss NBTA’s involvement in several key issues being considered by Congress and the Administration, including rental car excise taxes, Federal Aviation Administration (FAA) reauthorization, Secure Flight and Registered Traveler.

Verdery provided an in-depth update on FAA reauthorization and the Next Generation air traffic control system, explaining the debate currently taking place between commercial and general aviation (including corporate jets) over the future funding of the FAA.

“Of course, whenever you talk about building an all-new system, the first question everyone involved asks is, ‘Who pays for it?’,” said Verdery. “And that is now the question dominating the conversation in Washington on this issue.” 

Verdery went on to explain that the airlines want to put more of the financial burden on corporate jets.  The Administration originally sided with the airlines and proposed a plan that would do just that. The plan received little support, and a new proposal was put on the table – a surcharge of $25 for commercial aviation and business jets.  However, the general aviation community rejected this approach, considering it an arbitrary amount for an as-yet-undefined system, and indicating a fuel tax increase would be the only solution acceptable for the GA community. 

On September 20, the House and Senate approved a six-week extension of the current law to give lawmakers time to finish work on the four-year reauthorization bill.

“NBTA believes that the current air traffic control aviation system needs dramatic upgrades in infrastructure and technology in order to cope with significant growth in future air travel,” said Verdery. “We believe Congress should act now to begin defining and building tomorrow’s air traffic control system”   

The Connecticut/Westchester Business Travel Association and the New Jersey Business Travel Association were also stops on the tour. Shane Downey, Government Relations Assistant Manager, spoke to both groups on the increase of rental car taxes across the United States and the impact these taxes have on NBTA member companies.

“In the past 10 years, the number of car rental excise taxes has doubled,” said Downey. “This is an alarming trend, and is only expected to worsen”

Downey explained that rental car excise taxes are often advertised as a tax on tourists, but, in truth, these are hidden taxes on local businesses. He cited an NBTA survey that revealed a majority of its member companies rent most of their cars in their home markets.

To combat these taxes, a broad coalition of stakeholders, including NBTA, is actively supporting H.R. 2453. The bill would prohibit states from enacting further discriminatory taxes against rental cars. Downey encouraged attendees to get involved by writing to their congressmen or senators. “You are the key to winning the battle,” he said.

Downey also spoke on the importance of NBTA members engaging their elected officials on corporate travel issues and contributing to the NBTAPAC (Political Action Committee).

“NBTAPAC is the only political action committee that represents the business travel industry,” said Downey. “We need your help make the United States Congress not only pro-business travel, but also pro-NBTA.”

Both Downey and Verdery attended the New York City Business Travel Association Education Day on October 12. Verdery conducted a breakout education session on current political issues affecting business travel, and Downey participated on a panel discussing ways NBTA members and companies can become involved in political issues that affect them.

“The NYCBTA put on an outstanding show,” said Downey. “We were happy and honored to attend and speak before more NTBA members and corporate travel professionals.”

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