Q & A: What travelers need to know about airline ticket taxes ...

Air Transportation See more topics ?Government collects the tax rate. This includes airfare taxes 7. 5 percent, 7. 5 percent tax on the sale of frequent flyer miles, cost $ 3. 70 per segment, a $ 16.

30 international arrival / departure taxes and departure taxes for flights between Alaska $ 8. 20 / Hawaii and U. S. mainland. Who pays this tax now? None.

At midnight 22 July, the FAA authority to collect the taxes expired. So if you buy a plane ticket after that time, you do not have to pay taxes, although other facility fees may apply depending on the flight. Sounds like a win for consumers. So whata big problem? Well, you do not pocket the 10 percent or more in potential tax savings, the airlines decided to raise tariffs to make a difference. So the flyers really will not see cost reductions.

This is not surprising because so many irritating. How many are making the airline tax problems? The airline does not collect the tax so technically they make money from higher tariffs. Taxes usually bring about $ 25 million a day for the FAA, so the airlines tend to get that money instead. What if I buy a ticket before July 22? Then you pay taxes. However, if your flight is actually happening during the period in which the FAA authority to collect taxes has expired, you could be due a refund.

How would I go about getting a refund? Most airlines directing customers to the IRS. However, the agency said today that the airline should be able to issue a refund. The last time the government tax in 1996 and the fall of 1997. According to the American SocietyTravel agents, tourists seeking tax refunds during this period are required to file tax returns, along with a copy of the receipt of their tickets, to the IRS. What if I buy my ticket now for the tax holiday but when I flew, back taxes? It depends on how the new legislaton written.

It's possible there could be exceptions for those who bought tax-free ticket. Is Congress working on a budget plan to end this mess? First of all, there is little evidence that Congress ever worked. On anything. But they sure do not talk. Some lawmakers say that the airlines need to pass the savings on to customers.

Two Democratic senators have asked airlines not to profit from deviations in the law and instead put into an escrow account prospective tax that will be used by the Airport and Airway Trust Fund. . .

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Source: http://finance.weediscuss.com/taxes/q-a-what-travelers-need-to-know-about-airline-ticket-taxes.html

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