Air Transportation Taxes Increased

For transportation beginning in 2001, the tax on transportation of persons by air is increased to $2.75 for each domestic segment. The percentage tax remains at 7.5%.

For 2001, the tax on the use of international air travel facilities will be $12.80 for both arrivals and departures. For air transportation between the continental United States and Alaska or Hawaii, or between Alaska and Hawaii, the tax on departures will be $6.40.

See Publication 510, Excise Taxes for 2001, for more information on air transportation taxes.

Luxury Tax Reduced

For 2001, the luxury tax on a passenger vehicle is reduced to 4% of the amount of the sales price that exceeds the base amount. The base amount for 2001 is $38,000.

See Publication 510 for more information on the luxury tax.

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