2 People, Same Ticket Price, Different Tax?
Jun 21, 2008, 3:33 pm
#1
Original Poster
Join Date: Apr 2001
Location: Austin
Programs: AA P4L, WN, BA, DL, UA, HHonors, IHG
Posts: 3,485
2 People, Same Ticket Price, Different Tax?
Recently I reserved 2 identical tickets on AA, sitting side-by-side in Economy. I am Plat, the other pax (my mom) has no status. I used a $300 voucher to pay for most of my ticket, we used a credit card to pay for everything else. It all happened in one phone call.
I just received the e-ticket confirmation, with this cost summary:
Me, fare $318.14, tax $43.36, total $361.50
Her, fare $318.14, tax $65.86, total $384.00
My guess is that the $22.50 difference in tax is related to my using a voucher (7.5% of $300 is $22.50).
Is that correct?
I just received the e-ticket confirmation, with this cost summary:
Me, fare $318.14, tax $43.36, total $361.50
Her, fare $318.14, tax $65.86, total $384.00
My guess is that the $22.50 difference in tax is related to my using a voucher (7.5% of $300 is $22.50).
Is that correct?
Jun 21, 2008, 4:20 pm
#2
Join Date: Sep 2005
Location: ORD
Programs: AA; Marriott; SPG; HH
Posts: 3,473
From what I understand, this has something to do with the price of your ticket and the value of the voucher because the do not charge tax on tickets paid with vouchers (up to the voucher amount, of course). Are both flights connecting - $40 tax is a bit high?
Jun 21, 2008, 4:32 pm
#3
Join Date: Jan 2005
Location: New York
Programs: AA Plat, CO Gold
Posts: 1,598
Yes, when you use certain types of vouchers, taxes get waived. Certainly the 7.5% federal excise tax. If the voucher is > than the ticket price, certain other taxes get waived as well. See the voucher FAQ thread for more discussion.
Jun 21, 2008, 7:41 pm
#4
Original Poster
Join Date: Apr 2001
Location: Austin
Programs: AA P4L, WN, BA, DL, UA, HHonors, IHG
Posts: 3,485