News
IRS Publishes 2008 Aviation Excise Tax Rates
by Scott Burgess, released on Thursday, January 03, 2008
Excise tax must be collected and remitted with respect to Part 135 charter flights, and Part 91 flights operated pursuant to time share agreements. Also, flights deemed to be commercial by the FAA and IRS (e.g. an impermissible “flight department” company) can be subject to excise taxes.
The Internal Revenue Service (IRS) has published the 2008 inflation adjustments to the excise taxes due on commercial air transportation. The rates for 2008 are: domestic segment fee, $3.50; international arrival/departure tax, $15.40; and international arrival/departure tax for Hawaii or Alaska flights, $7.70. The IRS did not modify the 7.5 percent tax that applies to the amount paid for domestic commercial air transportation. Revenue Procedure 2007-66 will be modified in the near future to include these 2008 inflation adjustments. These tax rates are applicable until February 29, 2008, to coincide with the pending FAA reauthorization. Depending on action taken by Congress, these excise tax rates could either be extended again or modified if changes are made to the FAA's funding structure.
Please contact Scott Burgess should you have any question with respect to excise tax issues.
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