House passes five-year extension of aviation taxes

Tax Hot Topics newsletterThe House voted for a Federal Aviation Administration (FAA) reauthorization package (H.R. 4) that extends aviation fuel and ticket taxes through Sept. 30, 2023. The Senate must now take up the measure before the current authorization expires on Sept. 30.

The extensions cover the following taxes:
  • 19.3-cents-per-gallon excise tax rate on noncommercial aviation gasoline
  • 21.8-cents-per-gallon excise tax rate on noncommercial aviation kerosene
  • 7.5% tax on the base ticket price
  • $4.10-per-person domestic segment tax for a single takeoff and landing (indexed for inflation)
  • $18.00-per-person international travel facilities tax for flights that begin or end in the United States ($9.00 for a flight that begins or ends in Alaska or Hawaii) (indexed for inflation)
  • 6.25% tax on the amount paid for transporting property by air

With the exception of aviation gasoline, the taxes had been set to expire on Sept. 30, 2018. Noncommercial aviation gasoline was set to revert to the 4.3-cents-per-gallon rate imposed on commercial airline fuel.

Dustin Stamper
Managing Director
Washington National Tax Office
T +1 202 861 4144

Omair Taher
Senior Associate
Washington National Tax Office
T +1 202 861 4143

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