House Bill Includes Tax Loophole Shielding Private Jet Owners

A provision quietly inserted into a federal air safety bill would restrict local governments from using satellite tracking data to identify private aircraft, potentially shielding wealthy owners from millions in tax liabilities. Critics argue the move creates a new, protected tax haven for the superwealthy during an election year.

The controversial clause targets data generated by the FAA’s mandatory Automatic Dependent Surveillance-Broadcast (ADS-B) technology. While intended for navigation and safety, the tracking system has become a vital tool for local tax assessors. In Los Angeles County, assessor Jeff Prang reported that using this data allowed his office to locate 1,000 previously hidden aircraft, uncovering $3.5 billion in taxable assets and securing $35 million in local property tax revenue.

If enacted, the House-passed provision would bar government agencies from using this tracking information to identify aircraft for tax collection purposes without express owner permission. Advocacy groups like Americans for Tax Fairness have condemned the measure as a direct handout to billionaires. Even some conservative commentators have warned that the optics of the move could damage Republican standing in the upcoming midterms, framing the policy as a tone-deaf exemption at a time when voters are primarily focused on inflation.