Q: We are providing a charter flight to a non-profit group with a tax exemption certificate. Does Federal Excise Tax apply?
A: In most cases, even if the non-profit group is tax exempt, FET will still apply to amounts paid for the flight. There are few very specific exemptions from the transportation of persons tax that apply to operations such as medical flights, but there is no generalized exemption for non-profit or tax-exempt groups. Unless one of the limited exemptions applies, operators should collect the 7.5 percent FET on amounts paid, along with applicable segment fees.