Money grubbing FBO's

Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

Jon

On Mar 27, 7:00 am, Jon Kraus wrote:
Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

Jon

I have been to many places around the country in which the local sales
tax was not included in the fuel price but added on to the price of
the fuel. I think it just depends upon how the FBO wants to display
the cost of fuel. It may be a local custom to add the local sales tax
at FBOs around Indianapolis.

Cary

I think it is very sad that we are losing more and more FBO's around
the country. Just yesterday I received notice from an FBO (Wings) that
has been in operation in Saint Paul for 39 years is now closing
because of lack of funds. If the only way these FBOs can stay in
business is to charge higher fees for fuel and add a ramp fee for
parking, then they need to do that and we have to support them as best
as we can. Otherwise, we will continue to lose FBOs, training
facilities, GA pilots, and ultimately the airport. I don't like paying
these fees either, but I know that most GA FBOs are not making a ton
of money but are barely hanging on.

Cary

On Mar 24, 8:59 pm, "wise purchaser" wrote:
what has happened? I have been seeing multiple FBO's charging for
using the ramp from 10 to 25 bucks to park per day also RIPPING me
off for fuel. Charging almost 4.50++ a gallon for AVGAS. PLUS county
flowage tax!

snip

Comments???

On Mar 24, 7:59 pm, "wise purchaser" wrote:
what has happened? I have been seeing multiple FBO's charging for
using the ramp from 10 to 25 bucks to park per day also RIPPING me
off for fuel. Charging almost 4.50++ a gallon for AVGAS. PLUS county
flowage tax!

http://www.airnav.com/ is your friend. I haven't bought fuel at home
for nearly 2 years. I make a fuel stop on the way out of town and an
hour or so before getting home. Small county and city airports all
over are trying to attract visitors by selling without the big price
markups. Support them and work the free market at the same time.
--
Gene Seibel
Tales of Flight - http://pad39a.com/gene/tales.html
Because I fly, I envy no one.

On Tue, 27 Mar 2007 08:00:01 -0400, Jon Kraus
wrote:

Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

I stopped overnight at Topeka. Gas prices looked pretty good, until I
got the bill. They added all taxes on to the pump price. I purchased
at Salina on the way back and like Michigan their pump prices included
all taxes. We have sales tax on about everything.


Jon
Roger Halstead (K8RI & ARRL life member)
(N833R, S# CD-2 Worlds oldest Debonair)
www.rogerhalstead.com

On Mar 27, 6:52 am, "Cary" wrote:
I think it is very sad that we are losing more and more FBO's around
the country. Just yesterday I received notice from an FBO (Wings) that
has been in operation in Saint Paul for 39 years is now closing
because of lack of funds. If the only way these FBOs can stay in
business is to charge higher fees for fuel and add a ramp fee for
parking, then they need to do that and we have to support them as best
as we can. Otherwise, we will continue to lose FBOs, training
facilities, GA pilots, and ultimately the airport. I don't like paying
these fees either, but I know that most GA FBOs are not making a ton
of money but are barely hanging on.


Again, I repeat my challenge. If anyone thinks the FBOs are charging
way to much, start your own fuel business, charge 10 cents/gal less
and become rich. If it doesn't work, then maybe the FBO isn't
overcharging as much as you think.

-Robert

On Mar 27, 8:00 am, Jon Kraus wrote:
Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

I know at my airport (KTTA in NC) my flying club rents planes wet but
we break out the base plane rental from the fuel, because we have to
charge sales tax on the rental but don't have to charge it on the
fuel, because the fuel price already includes all taxes. We verified
this with the state revenue department. It makes a difference of
about $2 in the hourly rates, and every little bit helps... I wonder
how many other places that rent wet are inadvertantly paying double
tax on their fuel (once when they fill the plane, then when they pay
sales tax on the wet rental).

Jon Kraus wrote:

Got a fuel bill from our FBO (KUMP Indianapolis Metro) the other day.
Not only do they charge one of the highest fuel prices around, they also
charge 6% Indiana sales tax on top of the 1% Indianapolis Airport
Authority surcharge (because they can).

When I called to inquire about charging 6% sales tax on the fuel they
just said "that is how we've done it for 20 years and everyone else does
it like that too." I've never had a sales tax added on top of the fuel
price before.

I thought that all the taxes we included in the price of the fuel?
Anyone else ever experience this?

Jon

I had that happen years ago DRIVING though Indiana. On my way back I
filled up before the state line. I have see it elsewhere also.
Fayetteville, AR (KFYV) does this. I always that was taxing a tax. But,
they can.

--

Regards, Ross
C-172F 180HP
KSWI

Robert M. Gary wrote:
On Mar 27, 6:52 am, "Cary" wrote:
I think it is very sad that we are losing more and more FBO's around
the country. Just yesterday I received notice from an FBO (Wings)
that has been in operation in Saint Paul for 39 years is now closing
because of lack of funds. If the only way these FBOs can stay in
business is to charge higher fees for fuel and add a ramp fee for
parking, then they need to do that and we have to support them as
best as we can. Otherwise, we will continue to lose FBOs, training
facilities, GA pilots, and ultimately the airport. I don't like
paying these fees either, but I know that most GA FBOs are not
making a ton of money but are barely hanging on.


Again, I repeat my challenge. If anyone thinks the FBOs are charging
way to much, start your own fuel business, charge 10 cents/gal less
and become rich. If it doesn't work, then maybe the FBO isn't
overcharging as much as you think.

-Robert

You do realize that at MANY airports the FBO has an agreement with the
airport owner that they are the only ones that can sell fuel? Mine, KELD, is
but one example. I can bring my own fuel but I can't sell it to someone
else. The stipulation is in my grond lease for my hanger.

Ross wrote:


I had that happen years ago DRIVING though Indiana. On my way back I
filled up before the state line. I have see it elsewhere also.
Fayetteville, AR (KFYV) does this. I always that was taxing a tax.
But, they can.


And it is a Fayetteville thing because it isn't done everywhere in Arkansas.