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Originally published July 22, 2011 at 5:23 PM | Page modified July 22, 2011 at 11:51 PM

FAA shutdown gives airline-ticket buyers a break on taxes

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 the tickets.

Seattle Times travel staff

quotes Don't need no stinking FAA / the airlines can regulate themselves. After all, they are... Read more
quotes If airline pax are not being taxed who is paying for the massive infrastructure air... Read more
quotes I can't believe that congress can't even keep the FAA running. What are the chances of... Read more

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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.

• The $8.20 departure tax for flights between Alaska/Hawaii and the mainland U.S.

Some other taxes and fees, including the Sept. 11 security fee, still will be collected.

Thousands of FAA workers face furloughs because of the funding stalemate, but the U.S. air-traffic control system will not be affected.

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