# FAA Funding Ends; Tickets may be Tax Free [Merged threads]



## Talent312 (Jul 23, 2011)

According to news reports, the FAA's authority to collect taxes on airline tickets is now in question.

"Airlines, alerted earlier this week that FAA authority could expire, have been making adjustments to their computer systems and websites so that at midnight, taxes will no longer be added to airfares... One airline, U.S. Airways, was already raising its fares. Other airlines may try to reap a windfall profit from the tax holiday."

"Passengers who bought their tickets before the shutdown, but who travel during the shutdown, may wind up due a refund, Treasury Department spokeswoman Sandra Salstrom said. That's because it's not clear whether the government can keep taxes for travel that takes place during a period when the government doesn't have authority to collect taxes, she said."

Disclaimer: No politics intended.


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## Ken555 (Jul 23, 2011)

Virgin America sent an email promoting this "discount". It is unclear to me if we would pay the tax after purchase but before flying, should the tax apply again between those two dates (not that it really matters, since it's out of our hands). I need to buy at least one ticket soon anyway, so likely will do so today or tomorrow.


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## vacationhopeful (Jul 23, 2011)

Ken555,
There was NO MENTION of any refunds if we flew on Aug 1st or late. 

I have a trip scheduled that day - it will be nice to have the FAA working.


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## x3 skier (Jul 23, 2011)

If anyone believes that the taxes will not be collected eventually, I have a bridge I would like to show them.:hysterical: 

It might happen but..........

Flying to Europe next Wednesday so, who knows, I might get a rebate.

Cheers


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## Ken555 (Jul 23, 2011)

I've always wanted to own a bridge.


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## dougp26364 (Jul 23, 2011)

x3 skier said:


> If anyone believes that the taxes will not be collected eventually, I have a bridge I would like to show them.:hysterical:
> 
> It might happen but..........
> 
> ...



This is what I've been thinking. For the government to miss out on taxes would be a huge surprise to me. I can see them writing into the final debt package passage some retroactive legislation which gives them the right to collect taxes during the shut down.

I'll still be looking at airfares, just in case. I have two flights I need to purchase for upcoming trips. If the fares are reasonable, why not take a chance. Then I can complain when the feds step back in and pull the cash right back out of my pocket.


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## KauaiMark (Jul 23, 2011)

*Got'em today*

I've been monitoring airfares for our trip in April. They've been hovering in the $450-$500/RT range until today when 
they showed up for $410. I booked the flights.

R/T airfare from San Jose to Kauai was $409.84 R/T plus $19 in taxes. 

It appears that's just 4.6% Hawaiian sales tax on the ticket prices. Doesn't appear that the extra 9/11 fee, no segment charges, facility fees, etc are being added!

As for the government retroactively trying to collect the fees *after *we bought the tickets and *before *we used them, someone should point out that might have accidentally stimulated a bit of the economy due to increased sales by eliminating $25-$50 taxes/fees/charges on each ticket.




..Mark


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## KauaiMark (Jul 23, 2011)

*ALERT: airfare taxes expired.*

Book those airline tickets while the Feds are asleep! But watch the airlines 
who are trying to get the "free money" it before you do.

http://finance.yahoo.com/news/Some-flyers-may-not-see-apf-1533581816.html?x=0


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## x3 skier (Jul 23, 2011)

What would be really nice is if the same thing happened in the UK and the "green" tax vanished for flights out of there. That would be a real savings especially for trans atlantic flights. 

One can only dream.  

Cheers


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## Sea Six (Jul 24, 2011)

I did some price checking on flights we have coming up.  Since this announcement, the prices were actually HIGHER than what I priced before.  I think the airlines are jacking up prices because there is so much talk about getting things cheaper now.  I don't believe it.  Do what you want, but be careful.


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## Dori (Jul 24, 2011)

Apparently SW was one of the few airlines to jack their prices. There is a big hoo haw over on Flyer Talk on the SW (WN) boards. They seem to have missed a golden opportunity for a much-needed PR boost.

Dori


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## JeffW (Jul 24, 2011)

Didn't this happen a decade or so ago?  I remember airlines advertising 'discounted' prices for purchases when the tax wasn't in effect.  I also remember if you already had tickets for that travel period, there was a form you could use to request a refund of the tax.

Jeff


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## Kay H (Jul 25, 2011)

I purchased a ticket for Grand cayman several months ago.  Got a notice today that tickets are now $1 cheaper than when I bought.  Big savings.


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## Talent312 (Jul 28, 2011)

*Transportation Secretary Slams Airlines*

Transportation Secretary Ray LaHood just completed a press conference to appeal to Congress to reinstate FAA funding. He also said that he has talked to the airlines' trade association, ATA, and several airlines directly about the practice of raising ticket prices to cover the amount of taxes that is not being collected during the impasse, and thereby adding to their bottom line.

An ATA spokesman said, "Customers are not impacted and are paying the same prices they were last week."


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## Passepartout (Jul 28, 2011)

Talent312 said:


> An ATA spokesman said, "Customers are not impacted and are paying the same prices they were last week."



Sigh...if you ever harbored doubt that the airlines simply regard the traveling public as cash cows eager to be milked by them, this should remove it. I also heard the airlines' excuse last week after taxes stopped being collected and they banded together to keep prices the same or higher, "We are just keeping prices the same as our competitors."

Jim Ricks


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## JeffW (Jul 28, 2011)

So....., when the tax is reinstated, will the airlines roll back their prices, or add them on the now-higher prices  

Jeff


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## Talent312 (Aug 3, 2011)

JeffW said:


> So....., when the tax is reinstated, will the airlines roll back their prices, or add them on the now-higher prices.



We shall see...

*Impasse Ends* (Condensed Version)

WASHINGTON (Reuters) - Congressional leaders struck a deal on Thursday to end a partial shutdown of the FAA that halted airport projects and threatened thousands of jobs. The compromise gives Transportation Secretary LaHood the authority to waive specific cuts in service to rural airports contained in the bill. "He will use that authority where appropriate," a senior Transportation Department official said.
--------------------------
Communities targeted for the proposed air service subsidy cuts are:
-- Morgantown, W.Va. -- Athens, Ga. -- Glendive, Mont. -- Alamogordo, N.M.
-- Ely, Nev. -- Jamestown, N.Y. -- Bradford, Pa. -- Hagerstown, Md. -- Jonesboro, Ark.
-- Johnstown, Pa. -- Franklin/Oil City, Pa. -- Lancaster, Pa. -- and Jackson, Tenn.
-------------------------

The end of the impasse also means the end of a revenue windfall for U.S. airlines. With no legislation in place to authorize FAA funding, carriers were not required to collect a 7.5 percent passenger tax assessed on tickets. Most, like Delta Air Lines, American Airlines, US Airways and Southwest Airlines, raised fares by that amount instead and stood to collect more than $1 billion in extra revenue had the shutdown lasted for another month.

_Spirit to its credit is not one of those who raised prices in lieu of taxes.
... a shame though that this airline is one I will not fly._


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