FlyerTalk Forums - View Single Post - Different taxes on same award ticket? [OneWorld]
Old Sep 27, 2016 | 3:27 pm
  #25  
seawolf
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Originally Posted by Adam1222
Well, yes, it would be strange if "US International Departure Tax" and " US International Arrival Tax" were collected on flights from New York to boston.

Also, these taxes are not part of the title 49 section of the code earlier cited, but rather the Internal Revenue Code, section 4261, which is not as straightforward as title 49 in terms of when it applies. But if you want to get your mind in knots: https://www.irs.gov/pub/irs-wd/1002004.pdf
Refer to 26 USC §4261(c)(1). Interesting that even IRS is referring you to Cornell's website for the IRS code.

(c) Use of international travel facilities
(1) In general
There is hereby imposed a tax of $12.00 on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States.

(2) Exception for transportation entirely taxable under subsection (a)
This subsection shall not apply to any transportation all of which is taxable under subsection (a) (determined without regard to sections 4281 and 4282).

(3) Special rule for Alaska and Hawaii
In any case in which the tax imposed by paragraph (1) applies to a domestic segment beginning or ending in Alaska or Hawaii, such tax shall apply only to departures and shall be at the rate of $6.
According to US-based airlines, $0 fare is not considered "any amount paid." No Departure/Arrival Tax. If YQ is charged, this gets triggered.

Up until two years ago, CX awards (JFK-HKG-JFK) when redeemed with AA is $0 fare. No US Departure/Arrival Tax. All this time the HKG Security Surcharge was being absorbed for CX.

At some point since then, CX decided to pass on the Security Surcharge to award passenger triggering a YQ of $6. AA started tacking on US Arrival Tax for HKG-USA oneway and both US Departure/Arrival Tax for US-HKG roundtrips.
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