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Thread: Tax on Miles
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Old Oct 15, 2001, 7:44 pm
  #8  
ZBeeb
 
Join Date: Jun 2001
Location: SFO, UA 1K, Hyatt Plat
Posts: 124
If this is a tax charged on the amount the airline charges the partner can we take this and calculate backwards what the partners pay the airlines for the miles?

For example if Hertz charges me $0.70 cents for this transaction can we assume that this is 8% sales tax on something purchased from United and therefore Hetz paid $8.75 to United? Or something similar to that.

From that we could then work out that the 700 miles I get with United for this transaction values the miles to the airlines at $0.0125?

Ok, so some of the numbers are random here, I don't have my recipt here for that rental and I can't remember the actual charge for the mile tax, but is the theory valid?
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