FlyerTalk Forums - View Single Post - Do airlines charge state sales tax on purchases?
Old Jul 30, 2008 | 7:44 am
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bmvaughn
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Originally Posted by KathyWdrf
I doubt that states are even attempting to tax airline flights. In general, it is goods, NOT services, that are subject to sales tax. (And there are even some exceptions in the case of goods.) Hotel taxes, for example, are local, not state. Your attorney, doctor, dentist, hairdresser, manicurist, etc., etc., etc., in general do NOT charge sales tax on their services. (I say "in general" because with 50 states, there are most likely exceptions. And, some states don't even have sales tax! Oregon, for example.)

And what the heck does this have to do with UA, specifically? I mean, do you honestly think that UA could get away with not paying some required tax that other airlines do have to pay?
I'm asking about UA, specifically. From my experiences, in almost every state, both goods and services are taxed - so yes, attorney, hairdresser, manicurist, etc (although health care seems to skirt under the radar if it's non-elective in many states).

I suppose my question would be more pointed if I had asked whether or not UA was figuring this out on the backend and paying the state, rather than trying to adjust prices on the front-end to take state taxes into account.

Originally Posted by KathyWdrf
The OP was asking about air travel -- NOT goods you purchase from the seatback pocket magazine, or airplane parts! (Oddly enough, as a longtime airline passenger, I have never yet had occasion to purchase airplane parts. )

As I said, state sales taxes tend to be levied on goods, not on services. (A generalization which may, of course, have some nuances and exceptions.)
Thank you for clarifying that I meant air travel and not purchasing things from SkyMall

Nor have I had the occassion to purchase airline parts - though I'm beginning to think it may make my chances of having operable IFE more likely
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