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Thread: Do airlines charge state sales tax on purchases?
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Old Jul 30, 2008 | 3:50 pm
  #11  
3Cforme
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The 7.5% Federal Excise Tax on airline tickets is dedicated to the airport & airways trust fund. This is substantially what pays for the runways and terminals used by the airlines. It is not a substitute for state sales taxes, which commonly go to state general funds. In this way airlines enjoy a tax advantage versus forms of transportation which do collect state and local sales taxes, like rental cars.

Let's have a level playing field!
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