Air Transportation Tax Rates Go Up

The Internal Revenue Service released its 2010 inflation adjustments to the excise taxes on airport transportation, with at least some of them ascending.

The excise taxes apply to the domestic segments of taxable air transportation and the use of international air facilities. The Fiscal Year 2010 Federal Aviation Administration Extension Act, Part II, signed into law on Dec. 16, 2009, extends the excise taxes to air transportation that begins or is paid for no later than March 31, 2010.

The excise taxes are adjusted annually for inflation.  For 2010, the excise tax on the domestic segment of taxable air transportation is $3.70, up from $3.60 in 2009. The excise tax for 2010 for international flights that begin or end in the United States is unchanged at $16.10.

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 2010, the international air facilities tax on these flights is $8.10, up from $8.00 in 2009.

Further details on the excise taxes on air transportation can be found in Form 720, the Quarterly Excise Tax Return, and its instructions.

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