Understanding the California Tax on Airline Tickets: What You Need to Know
Airline travel is a common mode of transportation across California and the world at large. With increased air travel comes the need for governments to collect tax on airline tickets. The California tax on airline tickets is one such tax that is an important source of revenue for the state. In this article, we explore the California tax on airline tickets in detail and everything you need to know about it.
What is the California Tax on Airline Tickets?
The California tax on airline tickets is a tax collected on all airline tickets sold in California. The tax is collected by airlines and is remitted to the California Department of Tax and Fee Administration (CDTFA). It is a component of the overall taxes and fees that airlines charge travelers when purchasing flights. The funds collected from this tax are utilized in funding the state’s transportation and airport improvement projects.
How much is the California Tax on Airline Tickets?
Currently, the California tax on airline tickets is set at 7.25% of the ticket price. Apart from the state tax, there is also the local tax that is tacked on to the ticket price, bringing the overall California sales tax rate to 9.5%. The local tax varies depending on the particular jurisdiction where the ticket is purchased. Travelers flying from California may, therefore, end up paying different tax rates depending on the destination they are headed.
Who is liable to pay the California Tax on Airline Tickets?
Airlines located within and outside California that sell airline tickets to customers traveling to or from California bear the responsibility of collecting and remitting the California tax on airline tickets. Airlines that fail to pay the tax are liable to legal action and penalties as prescribed by the state’s tax laws.
Are there exemptions to the California Tax on Airline Tickets?
Yes. There are exemptions to the California tax on airline tickets. Some of the exemptions include but are not limited to government-issued tickets, tickets issued to an organization exempt from federal tax under the Internal Revenue Code, tickets purchased for a religious purpose, and tickets purchased using a frequent flyer program.
Conclusion:
In conclusion, the California tax on airline tickets is an essential component of the overall taxes and fees incurred when purchasing airline tickets in California. It is collected by airlines and subsequently remitted to the California Department of Tax and Fee Administration to fund transportation, airport improvement projects, and other government projects. The tax rate is currently at 7.25% of the ticket price, with additional local taxes added on to the ticket price, bringing the California sales tax rate to 9.5%. It is essential to note that some exemptions exist from paying the California tax on airline tickets. Understanding the California tax on airline tickets is essential for all travelers and airlines operating in California.
