States Slam Air Privacy Act as Tax Dodge for Personal Jet Owners

State and local tax agencies want to block a privacy provision in federal air safety legislation that would limit their use of aircraft tracking data for audits and revenue collection, casting it as a tax shelter for owners of private jets.

Tax administrators object to the Pilot and Aircraft Privacy Act (PAPA), a feature of the House-passed bill crafted in response to a midair collision last year that killed 67 people. The measure would prohibit governments and the nation’s 5,000 public-use airports from using aviation surveillance data for tax and fee enforcement purposes.

Supporters in the House, including Rep. Bob ...