April 27, 2002
Saturday - 12:05 am

Alaska Sen. Frank Murkowski late Thursday won approval of two amendments to the Senate Energy Bill that will reduce taxes paid by float plane operators in Alaska and passenger costs on regularly scheduled airlines.

The changes Murkowski sought had been approved by Congress in August 1999 in a bill that was ultimately vetoed by former President Bill Clinton.

• Air Passenger Tax Changes: One of the amendments changes the definition of a rural airport for purposes of the $3 per segment tax charged on flights with multiple stops. Under the new definition, the segment fee would not apply if there are no roads that connect two airport destinations. For example, the segment fee would not apply to or from flights Juneau to Hoonah or Fairbanks to Fort Yukon.
• Floatplane taxes: The second amendment would end the requirement that passengers on floatplanes have to pay the 7.5 percent air transportation tax which is used to partially finance Federal Aviation Administration facilities.

"The tax on floatplanes is just unfair. In nearly all cases these aircraft do not even use FAA facilities. They fly at fairly low altitudes - 1,000 to 1,500 feet in what is known as uncontrolled airspace. They are not tracked by FAA and they are not landing at airports, obviously, they are landing in the water," said Murkowski in explaining the reason for the tax change.

Source of News Release:

Office of Senator Frank Murkowski
Web Site

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