Courtesy of the Internal Revenue Service
WASHINGTON — Today the Internal Revenue Service announced the 2008 inflation adjustments to the excise taxes on air transportation.
Excise taxes apply to the domestic segments of taxable air transportation and to the use of international air facilities. The Consolidated Appropriations Act, 2008, signed into law on Dec. 26, 2007, extends these excise taxes to air transportation that begins or is paid for no later than Feb. 29, 2008.
These excise taxes are adjusted annually for inflation. For 2008, the excise tax on the domestic segment of taxable air transportation is $3.50. The excise tax for 2008 for international flights that begin or end in the United States is $15.40. The tax on use of international air facilities also applies at a reduced rate to departures of interstate flights that begin or end in Alaska or Hawaii. For 2008, the international air facilities tax on these flights is $7.70.
Revenue Procedure 2007-66, which contains other amounts that are adjusted annually for inflation, will be modified in the near future to include the 2008 inflation adjusted items listed above.
TaxMama Note: I’ve just been pricing airfares for some trips this year. Be very careful when you look at prices on the discount sites. Some of them don’t include the taxes and fees.
And let me tell you – some of those add-on costs will more than double the very low prices listed on those sites. You’re in for sticker shock when you actually make the ticket purchase. Sometimes, you’ll find the lower prices (fully burdened with all the fees and taxes) on the airline’s site.
- Ask TaxMama :: Where taxes are fun and answers are free
www.TaxQuips.com :: The number ONE free tax podcast online
- IRS News :: Updates in tax laws – and Tax Tips from IRS and other Agencies
- Revenue Procedure 2007-66 :: Excise Taxes on Air Transportation