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Article from Seattle Times, Image from Virgin America
The federal government has left the FAA in limbo — and that will save buyers of airline tickets some money since they won’t have to pay federal taxes on tickets.
Starting Friday at midnight, airlines will not have the authority to collect federal excise ticket taxes since Congress adjourned Friday without approving an FAA funding measure.
Seattle-based Alaska Airlines estimates travelers could save about 14 percent on some airline tickets. And, said Alaska spokeswoman Bobbie Egan, the federal taxes will not apply retroactively. However, whenever Congress passes a stopgap funding measure for the FAA, the taxes will resume.
Taxes that won’t be collected by Alaska (and other airlines) include:
• The 7.5 percent tax generally applicable to domestic transportation.
• A $16.30 international arrival/departure tax each way (for flights to Canada, Mexico or other foreign destinations).
• The $3.70 domestic segment tax.