April 29, 2009
For flights originating outside the U.S. that enter the U.S. and make an interim tech stop to clear customs and/or refuel and are on the ground for less than 12 hours with no passengers embarking before continuing on to a final U.S. destination, the entire portion of the trip from the starting point outside the U.S. to the final U.S. destination is not subject to the 7.5% FET transportation tax. If the trip continues after making a stop of more than 12 hours, or where additional passengers embark, any remaining legs in the U.S. flown by the embarking passengers are subject to the 7.5% FET.
Conversely, for flights originating inside the U.S. that make an interim tech stop to refuel and are on the ground for less than 12 hours with no passengers disembarking, before continuing on to its final destination outside the U.S., the entire portion of the trip originating within the U.S. to the final destination outside the U.S. is not subject to the 7.5% FET transportation tax. If the trip continues after making a stop of more than 12 hours, or where passengers disembark, the legs flown by the disembarking passenger in the U.S. are subject to the 7.5% FET.
Inbound International Flight:
A flight carrying 6 passengers departs from San Jose Del Cabo, Mexico (MMSD) and flies to San Diego (KSAN) to clear customs. The flight is on the ground at KSAN for 1 hour and one new passenger embarks the aircraft. The flight then departs for San Francisco (KSFO) and drops 2 of its passengers, including the new passenger from SFO. It departs and flies to Portland (KPDX) where the remaining passengers disembark and the flight terminates.
The resulting tax liability for this flight would be:
- MMSD to KSAN — This is part of “uninterrupted international air transportation”.
- KSAN to KSFO — This is part of “uninterrupted international air transportation” for all passengers except the new passenger flying to SFO. For this person, the 7.5% FET and domestic segment fee would be due on that leg.
- KSFO to KPDX — This is part of “uninterrupted international air transportation”.
- Note: This entire trip would be subject to the per person International Air Travel Facilities Fees, except for the passenger that embarked in SAN and flew to SFO.
Outbound International Flight:
A flight departs from Portland (KPDX) and flies empty to Chicago (KORD) where it picks up 2 passengers. It then flies to KCVG and picks up another passenger. Finally, it stops in Fort Lauderdale (KFXE) for fuel and does not disembark any passengers. At all stops, the flight is on the ground for less than 12 hours. The flight then departs for Panama City (MPTO) where the flight terminates.
The resulting tax liability for this flight would be:
- KPDX to KORD – This deadhead flight is part of “uninterrupted international air transportation”.
- KORD to KCVG –This is part of “uninterrupted international air transportation”.
- KCVG to KFXE – This is part of “uninterrupted international air transportation”.
- KFXE to MPTO – This is part of “uninterrupted international air transportation”
- Note: This entire trip would be subject only to the per person International Air Travel Facilities Fees.