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Association of Retail Travel Agents Urges Caution On Ticket TaxesJuly 25, 2011 By: George Dooley Travel Agent
The Association of Retail Travel Agents (ARTA) alerted members on Friday that certain U.S. ticket taxes would not apply for tickets issued on or after July 23 or for tickets issued prior to that date, but for travel on or after July 23.
Due to the lack of agreement to extend the FAA authorization before Congress adjourned this weekend, ARTA said the inaction causes, among other things, various transportation taxes to expire, most notably:
The 7.5 percent tax generally applicable to domestic transportation (Tax Code: US)
The $3.70 domestic segment tax (Tax Code: ZP)
The $16.30 international arrival/departure tax each way for flights to Canada, Mexico or other foreign destinations (Tax Code: US)
The $8.20 departure tax for flights between Alaska/Hawaii and the mainland U.S. (Tax Code: US)
Other U.S. taxes and/or fees still apply.
Therefore, ARTA said for tickets issued on or after July 23, for applicable travel anytime, the above taxes will not apply.
For tickets issued on or before July 22, for applicable travel on or after July 23, a refund for overpayment may be due.
ARTA said it has been in touch with various stakeholders responsible for disseminating the rules regarding refunds.
"It is unclear at this point whether refunds should be requested from the ticketing carrier or directly from the IRS," ARTA said.
At this time, ARTA said it would recommend holding off on any refunds until the refund process is made clear.
It should be pointed out that if Congress subsequently agrees to extend the FAA Reauthorization, the taxes above would be reinstated and further refunds may not apply.