Tennessee Weighs Big Tax Break For FedEx

Tennessee lawmakers may soon give FedEx a major break on the taxes it pays on aviation fuel.

A proposal making its way through the state legislature would slash the company’s fuel tax bill by tens of millions of dollars each year.

Senate Majority Leader Mark Norris says the deal is needed to keep FedEx from moving its refueling operations from Memphis to another state.

“It’s just a fact of jet aircraft. It’s just real easy to put down one state short and refuel.”

The plan, Senate Bill 982, was put together by Gov. Bill Haslam’s administration and approved yesterday by the state Senate. The proposal is still working its way through the House of Representatives.

The tax on aviation fuel is supposed to go into a fund for airport maintenance. Analysts say it’s unclear where money for upkeep will come from if FedEx’s tax break is approved.