Title: Opinion File 77-66 thru 77-69
CITATION THUMBNAILS ZOOMABLE
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Permanent Link: http://ufdc.ufl.edu/WL00003493/00001
 Material Information
Title: Opinion File 77-66 thru 77-69
Physical Description: Book
Language: English
 Subjects
Spatial Coverage: North America -- United States of America -- Florida
 Notes
Abstract: Buddy Blain's Collections - Opinion File 77-66 thru 77-69
General Note: Box 14, Folder 5 ( Opinions 1976 - 1977 - 1976 - 1977 ), Item 46
Funding: Digitized by the Legal Technology Institute in the Levin College of Law at the University of Florida.
 Record Information
Bibliographic ID: WL00003493
Volume ID: VID00001
Source Institution: Levin College of Law, University of Florida
Holding Location: Levin College of Law, University of Florida
Rights Management: All rights reserved by the source institution and holding location.

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MEMORANDUM OF LAW -- The Airport and Airway Revenue Act of 1970


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The Airport and Airway Revenue Act of 1970 (Public Law 91-258,
May 21, 1970, in Section 4261, Internal Revenue Code) imposed
an 8% tax on amounts paid for air transportation furnished within
th, continental United States. For international flights the
ta: is a flat $3.00. The rate of this tax for flights within
thi continental United States will decrease to 5% as of June 30,
1980. Section 4261 (e) Internal Revenue Code.

The Airport and Airway Revenue Act of 1970 specifically abolished
provisions of Section 4263, Internal Revenue Code, which exempted
from payment of this tax certain groups furnished air transportation,
am)ng these state and local governments. The effective date of
thLs change is July 1, 1970. As of that date, the only exemptions
to this tax are extended to small aircraft (maximum take off
weight of 6000 lbs., provided that said aircraft is not operated
as an established line, Section 4281, Internal Revenue Code)
and to certain affiliated groups' (aircraft owned by corporations
that are not for hire by persons not members of such a
corporation, Section 4282, Internal Revenue Code).







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9/21/70





SPEED MESSA


Buddy Blain

Gibbons Law Firm


SUBJECT


GE


S Clint Schultz, Chief
IM ----------


Finance & Accounting Divis


ion


DATE August 12, 1970
. I J ^- --_-- --A .,A t -i


Attached is a copy of the memo from the Air Trattic Conrerence or America wnicn

I read in part to you over the telephone a few minutes ago. When you have some-

thing definite on the matter of the new tax, please let me know as we have

deducted all of these taxes from current tickets just vouchered for payment,

pendi g receipt of some guidance in the matter from you.








CS:bf Dictated 8/11/70




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loUiM "SNAP-A-N
WILSON JONES COMPANY


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AY" FORM 44-900 2-PARTS,
S* 1961 PRINTED 11N U.S.A.


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I/ TRAFFIC C0'. FERENCE OI' ERICA
A DISWION OF AMI 1 --.POWr ASSOCIATION OP AMEICA
MbQelCOrSICT.CCTy AVrl:.E,".- VASaL'?SC=~ ,., C. :-. ., a 4


June 8, 1970


ATC Agents and Agency Locations in the Ur
and Canada


SUBJECT: CHANGES TO U. S. TRANSPORTATION TAXES


As a result of the Airpor t- n- Arways bill recently passed
by Congress, all adr travel within or rrom e United States
commencing on or after July 1, 1970, will involve changes in
.S. Transportation Taxes. The following are the highlights
f the changes:

DOMESTIC TRANSPORTATION


A. Effective Date

The present U.S. Federal transportation. tax on air
transportation directly or indirectly between points
within the Continental U.S. and/or the Canadian and
SMexican buffer zones, and between points within Alaska
and within Hawaii is increased to 8% for any travel
;-which begins on and after July 1, 1970. Domestic
travel which begins before July 1st is taxable at
: '-5%, including any portions which occur after that
S''date. Tickets sold prior to July 1st for travel be-
Sginning on or after that date are taxable at 8%.
Any tickets which have already been sold for travel
beginning on or after July 1st, on which only 5% tax has
been collected, are subject to the 8% tax.

B.' Showing Fares and Tax on Tickets

-:DomeStic tickets (including MCOs and XOs for air"
transportation), all of wirhc3tat the 8%
rate, can only sa l o ff-ts including tax on-L.,,
Might and ger's coupons. The law prohibiti
showing fare and tax separately, and this in-
cludeamounts shown in the "FARE CONSTRUCTION" lad-
der i passenger tickets. There is a $100.00 pen- .
"al for each violation of this. This provision
des not apply to any ticket which is not entirely
txable at 8%, such as tickets between U.S. main-
Salnd and Hawaiian or Alaskan points and international
Tickets, on which the fares and tax should be shove in
tik normal manner. Fare and tax amounts should e




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E. Cargo & Excess Baggage

,A 5% tax on domestic cargo is imposed; however, there
.is no tax on excess baggage which moves at excess
.'baggage rates. There is a 5% property tax on domestic
excess baggage moving at air freight rates. The
rates & tax should be shown separately on the airbill.

F. Charters
SThe price of all domestic passenger charters, includ-
ing military charters, and any ferry, waiting time
or layover charges, is entirely taxable at 8%. Only
the total price including tax can be shown on the
charter certificate, and a breakdown of the rates and
tax cannot be shown, as the charter certificate is
Considered to be a ticket. This interpretation,
however, is still subject to an official ruling by
,the Internal Revenue Service.


- There are no exemptions from the domestic tax. All
government travel is taxable, regardless of the form
of payment. (As all of the tax revenue will go into
/ the Aiort/Airway Trust Fund, this is the only way
to allocate the costs to all users.) There is one
exception. The provision in the existing tax laws
pertaining to U.S. military personnel and their depend-
ents, on leave, and arriving in the U.S. via military
flights, is still applicable. There is no tax on wholly
domestic tickets purchased outside the U.S. by such
military personnel arriving in the U.S. on military
flights, or on wholly domestic tickets purchased by
such personnel within six hours after arrival, which
are used on the first available flight.
H. H Prepaid Ticket Advice Messages

As Prepaid Ticket Advice Messages for domestic tickets
must continue to show a breakdown of the fare, tax &
total, even though the MCO and the ticket only shows
a total price including tax, provide this breakdown
to the airline when calling in a PTA.

I. Domestic Tickets on Which State or Local Taxes are
Collected

On domestic tickets on which state or :,.cal taxes are
collected in addition to the 8% federal transportation
tax, show the amount of the local tax in the "TAX" box,


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will be pu\ .ned in, the July ist ion
will be puujlisied in the July 1st edition.


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