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The transportation of property by air is subject to a special 6.25% federal excise tax (FET) on the amount paid for such air transportation services.
Federal Excise Tax Previously Applicable to all Part 135 Flights. In the past the amounts charged for all flights operated under Part 135 were subject to the 7.5% Federal Excise Tax, and segment fees.
FET on Jet Fuel The Act suspends the taxes due on kerosene used in commercial aviation (i.e jet fuel). The taxes for noncommercial use of jet fuel and fuel surcharges applicable to fractional program aircraft are not impacted. Taxes on aviation gasoline also remain unchanged.
A 3.25% Oklahoma excise tax is levied on the purchase price of an aircraft that must be registered with the Federal Aviation Administration upon the transfer of legal ownership or upon the use in Oklahoma of any such aircraft.
Section 4051 of the IRS code addresses Federal Excise Tax on the sales of certain large trucks. The FET tax on trucks is 12% of the total sale price that is added on when purchasing a new truck.
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Federal Excise Taxes (FET)
What is Federal Excise Tax (FET) on Private Charter Flights? From the NBAA Federal Tax Guide: All business aircraft operators, private and commercial, are required to pay Federal Excise Tax (FET) on the transportation of persons or property by air.
The 225-mile zone is that portion of Canada and Mexico that is not more than 225 miles from the nearest point in the continental United States. Locations not in Canada or Mexico, such as Nassau, Bahamas, are not part of the 225-mile zone.

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