Understanding Airline Ticket Excise Tax: Everything You Need to Know
The airline ticket excise tax is a federal tax charged by the US government on air transportation. The tax applies to domestic flights, international flights, and flights between the US and its territories. In this article, we will take a closer look at the airline ticket excise tax and explain everything you need to know about it.
What is the Airline Ticket Excise Tax?
The airline ticket excise tax is a tax levied by the US government on air transportation. The tax applies to all flights originating in the US, regardless of the destination. The tax is also charged on reissued tickets, open tickets, and tickets booked as part of a package tour. The tax is collected by airlines and remitted to the government.
How Much is the Airline Ticket Excise Tax?
The airline ticket excise tax is currently set at 7.5% of the base fare for domestic flights and 7.5% of the base fare plus any applicable mileage-based charges for international flights. The tax also applies to any fees and surcharges imposed by airlines, such as fuel surcharges and baggage fees.
Who Pays the Airline Ticket Excise Tax?
The airline ticket excise tax is paid by passengers and is included in the ticket price. The tax is collected by airlines at the time of ticketing and is remitted to the government. Passengers do not have to pay the tax separately.
What is the Airline Ticket Excise Tax Used For?
The airline ticket excise tax is used to support various programs and initiatives, including the Airport and Airway Trust Fund (AATF). The AATF provides funding for airport infrastructure projects, air traffic control systems, and other aviation-related programs. The excise tax is also used to fund the Essential Air Service program, which provides funding and subsidies to airlines that serve rural communities.
Are There Any Exemptions or Exceptions to the Airline Ticket Excise Tax?
There are certain exemptions and exceptions to the airline ticket excise tax. For example, the tax does not apply to flights operated by military aircraft or certain government aircraft. The tax also does not apply to flights to or from Alaska or Hawaii that are not part of a continuous route to or from the continental US. In addition, certain taxes and fees may be waived for passengers who cancel their flights due to military orders.
Conclusion
The airline ticket excise tax is an important source of revenue for the US government, and it applies to all flights originating in the US. Passengers do not have to pay the tax separately, as it is included in the ticket price. The tax is used to support various aviation-related programs and initiatives, including airport infrastructure projects and the Essential Air Service program. It’s essential to understand this tax to make informed decisions about your air travel expenses.
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