Staff Reports
The House slipped a curious little rider into the ALERT Act right at the end of the process. Section 105 says you can’t use ADS‑B transponder broadcasts — the very signals airplanes send out so other pilots and air traffic controllers can see them — “to identify aircraft for the purpose of obtaining revenue” without the owner’s consent. Supporters call it a privacy and safety fix. Critics call it a private‑jet tax shelter. Both sides have reasons to talk, but Washington’s last‑minute handiwork smells like a favor to the wealthy that could leave ordinary counties holding the bill.
What the amendment actually does
The language comes from the Pilot and Aircraft Privacy Act and was tacked on to H.R. 7613, the ALERT Act, which itself was Congress’s answer to a deadly midair collision. The amendment bars using ADS‑B data to match a plane to an owner for billing or tax collection unless the owner agrees. That sounds simple. In practice it could block airports from using transponder feeds to invoice landing and parking fees and it could prevent county assessors from finding out which jets operate in their jurisdictions so they can tax them.
Why supporters say it’s needed — and why that argument is shaky
Pilot groups like the Aircraft Owners and Pilots Association loudly back the change. Their pitch is reasonable on its face: ADS‑B was mandated for safety, not to help vendors monetize a safety signal. They warn that turning a collision‑avoidance tool into a billing machine could push some pilots to hide or disable ADS‑B, which would be dangerous. That’s a fair point. But it’s also odd that the fix is a blanket ban that helps avoid enforcement rather than a narrow rule that stops private companies from selling subscription billing while leaving lawful public tax collection alone.
Why critics call it a tax haven — and they have numbers
County assessors and local officials aren’t angry for sport. Los Angeles County’s assessor used ADS‑B to find roughly 1,000 aircraft worth about $3.5 billion in assessed value. Some Texas officials say they could lose tens of millions of dollars if this tool goes away. The Congressional Budget Office says federal budget effects would be small, but CBO doesn’t count local property tax or landing‑fee impacts. So Washington can shrug while cities and counties face real revenue gaps. For places that already struggle to fund schools, roads and emergency services, that’s not theoretical — it’s painful.
What comes next — and what the Senate should do
Now the Senate has to decide whether to keep this provision, fix it, or toss it out. Senators should not let last‑minute language stand if it creates a loophole for the wealthy to dodge taxes and fees. If privacy matters, draft a narrow carve‑out that stops commercial monetization of ADS‑B while preserving legitimate government enforcement. If safety matters, don’t write a law that encourages transponders to be turned off. The right move is to protect safety and local tax fairness — not to gift a tax shelter to the private‑jet crowd and call it privacy reform. The Senate should clean this up before voters pick up the tab.
