Story ID: 
IRS Revises Certain Commercial Flight Fees
By: Kerry Lynch
Caption: The agency has altered its approach to fee adjustments in accordance with the Tax Cuts and Jobs Act.
Word Count: 177
The IRS has revised the way it calculates inflation on U.S. tax rates and adjusted certain aviation fees accordingly for 2018, NBAA advised members. These revisions to inflation calculations are in response to the Tax Cuts and Jobs Act, the association added. As a result, the head tax for flights beginning or ending in Alaska or Hawaii is $9.10 (up 10 cents) for calendar year 2018, and the international head tax increases to $18.30 (up 30 cents), according to NBAA’s "Federal Excise Tax Guide." The domestic segment fee, meanwhile, is $4.10 for 2018 and the federal excise tax (FET), also known as the passenger ticket tax, remains at 7.5 percent.

NBAA’s "Federal Excise Taxes Guide" provides details on a range of aviation taxes that affect business aircraft. This includes how FETs apply to commercial, fractional, and other operations. The guide further provides background on concepts such as aircraft possession, command and control; discusses FET exemptions; and reviews charter broker obligations. NBAA updates the guide to address evolving policies and rules as a result of legislation or IRS legal interpretations.