why don't airlines have to collect state sales tax on onboard food-for-purchase or booze?

I want to say that it's because flights from A to B cross states lines, so they dont' have to collect it. However, what about flights are completely within one state? (i.e. SFO-LAX or JFK-BUF)

Could be included in the price.

Interesting - the other day I was on two flights with Gogo internet service. On the first flight (ex-FAT), no tax was charged, however, tax was charged on the second (ex-DFW) flight - a note on the payment screen stated that the tax was being assessed based on the originating city.

Can't answer your question, but similar to something else I've thought of before: Why don't airlines have to follow local rules regarding alcohol? For example, many states prohibit alcohol serving before certain times (esp. on Sundays). They follow these rules in the clubs but not for pre-departure drinks on planes.

States have tried to enforce state alcohol rules on airlines. See the following:

http://www.associatedcontent.com/art...s_flights.html

And the Appeals Court ruling yesterday (December 3, 2010) overturning the decision: http://www.newser.com/article/d9jsrq...o-flights.html

It is included in the price. I am almost certain it's based on where the airline takes delivery of the food, not where it's served, so if their supplier sells them the food in Boston, Massachusetts law would apply, if in St Louis, than Minnesota code would apply, but each state is different

Minnesota for example requires the vendor to collect sales tax on food delivered that is not for resale, and they require the airline to pay sales tax on food that is for resale. From their tax code

Application of Tax to Taxable Food Served by Airlines

If an airline serves taxable food as part of its transportation service and no separate charge is made for the food, there is no sale of taxable food by the airline within the meaning of the Sales and Use Tax Law. Under these circumstances, the sale of the taxable food in Minnesota to the airline is a taxable retail sale. Persons who sell taxable food to an airline for use in its transportation service and not to be resold by the airline must charge sales tax on the sales price of the taxable food.

If an airline purchases taxable food for sale to passengers who are separately charged for the food, the sale to the airline is exempt, for the purpose of resale. The airline needs to provide their supplier with a fully completed certificate of exemption in order to claim the exemption. The sale of the taxable food by the airline to its passengers is taxable.

Massachusetts on the other hand does not collect tax on food for airlines:

f) Commercial Airlines.

1. Sales to passengers. The furnishing of meals to commercial airline passengers in commercial aircraft, whether the aircraft is in flight or on the ground, is exempt from the sales tax.

2. Sales to airline. The sale of meals to a commercial airline for consumption by its passengers in the aircraft is exempt from the sales tax.

My guess would be you would have to go through the tax code of each state you take delivery of food in to be able to follow it all (or just have software that does it for you)

guess there's no airline has a hub in the state of Delaware.

Thank goodness. Imagine being stuck in Dover after a cancellation

Alaska Airlines operates substantially out of PDX and ANC, both of which are in sales-tax-free states.

Tracking the origin would be impossible on some stuff. I received a can of Sprite from a DFW-RNO flight that was obviously produced in Russia... since the can was completely in Russian.

Hmm .. so suppose one passenger assaults another on a JFK-LAX flight while over Kansas. I believe such crimes fall under state law, not federal. So under which state's law could the assailant be prosecuted?

it'd fall under federal. The skies are all considered Federal. On the ground is local.