srodr
Oct 14, 11, 5:50 pm
I just read the following on Alamo's website:
When a renter chooses to receive miles in the American Airlines AAdvantage program or the Delta Air Lines SkyMiles program, the Frequent Traveler Service Charge will be calculated based only on the Federal Excise Tax (7.5%) expense incurred by Alamo when it purchases miles from those airlines. Under the tax relief act of 1997, all companies that purchase frequent flyer miles from airlines must pay a 7.5 percent excise tax on the cost of those miles (approximately 6 cents per rental day). The 7.5% FTP tax applies to all US states except Arizona, California, Missouri, Oregon and Wyoming.
So if you rent in California or another of the states listed above and ask for Delta miles, do you pay the normal $.75/day or the 'approximately 6 cents per rental day'?
When a renter chooses to receive miles in the American Airlines AAdvantage program or the Delta Air Lines SkyMiles program, the Frequent Traveler Service Charge will be calculated based only on the Federal Excise Tax (7.5%) expense incurred by Alamo when it purchases miles from those airlines. Under the tax relief act of 1997, all companies that purchase frequent flyer miles from airlines must pay a 7.5 percent excise tax on the cost of those miles (approximately 6 cents per rental day). The 7.5% FTP tax applies to all US states except Arizona, California, Missouri, Oregon and Wyoming.
So if you rent in California or another of the states listed above and ask for Delta miles, do you pay the normal $.75/day or the 'approximately 6 cents per rental day'?