IRS Increases Federal Excise Taxes for 2014
January 23, 2014
The IRS made inflation adjustments to federal excise taxes (FET) on commercial and private air transportation services effective January 1, 2014. Most non-commercial operators pay FET on fuel used to operate the aircraft, whereas commercial operators collect FET from customers based on the amount paid for the service. Please note that operators should consult IRS rules to determine what constitutes a commercial flight as the IRS and FAA have differing interpretations.
|
2013 |
2014 |
|
| Percentage Tax |
7.5% |
7.5% |
| Domestic Segment Fee |
$ 3.90 |
$ 4.00 |
| International Arrival/Departure Fee |
$17.20 |
$17.50 |
| Hawaii/Alaska Flight |
$ 8.60 |
$ 8.70 |