The Internal Revenue Service (IRS) announced inflation adjustments to the federal excise tax (FET) rates on air transportation for 2012. The adjusted rates are:
- Percentage Tax – 7.5%
- Domestic Segment Fee – $3.80
- International Arrival/Departure Head Tax – $16.70
- Hawaii/Alaska Flight Tax – $8.40
The adjusted rates are valid for air transportation taken from January 1, 2012 through January 31, 2012. The rates also apply to amounts paid on or before January 31, for transportation taken after that date. Since the Surface and Air Transportation Programs Extension Act of 2011 only extends these FET rates through January 31, any changes or extensions will depend upon what happens with the ongoing saga over the FAA re-authorization. Stay tuned.