American Airlines Unit Denied $163 Million Illinois Tax Refund

An American Airlines Inc. subsidiary is stuck with a $162.7 million tax bill after an Illinois appeals court ruled Thursday that an exemption doesn’t apply to its sales of aviation fuel.

“As it relates to aviation fuel, when fuel is removed from its temporary storage, loaded into a plane at O’Hare, and then consumed partly in Illinois, that fuel does not qualify for the ETS Exemption because it was not transported outside of the State for consumption ‘solely’ outside of Illinois,” Justice Thomas E. Hoffman wrote for the Illinois First District Appellate Court.

American Aviation Supply ...