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Taxing Airline Ancillary Fees: Baggage, Seat Selection, and In-Flight Services.

This bill expands the federal excise tax on air transportation to include a wide range of extra fees charged by airlines, directly impacting travel costs. Passengers will now pay tax on services such as baggage fees, seat selection, in-flight meals, Wi-Fi, and even ticket change or cancellation fees. Consequently, the total cost of air travel will increase for individuals who purchase these ancillary services.
Key points
Most extra fees charged by airlines (e.g., for baggage, seat selection, priority boarding) will become subject to the federal transportation tax.
The tax will also cover services related to booking, ticket cancellation, frequent flyer mile purchases, and in-flight food and entertainment.
Passengers who purchase ancillary services will face a higher total cost for air travel due to the addition of this tax.
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Additional Information
Lower Fees, Better Airports Act of 2023
Print number: S 1550
Sponsor: Sen. Schatz, Brian [D-HI]
Process start date: 2023-05-11