New Rates Published for Passenger Air Tax

The Internal Revenue Service recently published Revenue Procedure 2003-85, which provides inflation-adjusted items for 2004. Section 3.27 specifies the rates for 2004 for the domestic segment fee and the international arrival/departure tax, applicable for commercial air transportation. For this year these rates will be 7.5 percent of amounts paid; a domestic segment fee of $3.10 per person; an international arrival/departure tax of $13.70 per person; and an international arrival/departure tax for Hawaii or Alaska flights of $6.90 per person.