NBAA Has Answers to Your Federal Excise Tax Questions

For Part 135 air charter operators, and some Part 91 flight departments, federal excise tax (FET) on commercial transportation of passengers generates challenging questions on an almost daily basis. “I see people getting tripped up on the international flights where they’re stopping someplace before they travel on,” said Mark Dennen, chief financial officer at Solairus Aviation and a member of NBAA’s Tax Committee. “If you’re flying the 48 [continental] states, which is the majority of charter trips, it’s a pretty straight forward calculation. But it’s when you’re going different places outside the country, or Alaska and Hawaii, where most people have issues.”