The following are exemptions to the U.S. Flight Segment Tax except...

Study for the Airlines Reporting Corporation (ARC) Test. Utilize flashcards and multiple choice questions with hints and explanations. Prepare for success!

Multiple Choice

The following are exemptions to the U.S. Flight Segment Tax except...

Explanation:
The key idea is understanding which kinds of travel qualify for the U.S. Flight Segment Tax exemptions. Some travel scenarios are specifically exempt from the tax—such as senior citizen discounts, active military travel, and group travel—so tickets in those cases aren’t taxed per flight segment. A companion ticket, however, does not fall under those exemptions and is subject to the Flight Segment Tax. In other words, companion tickets are not exempt from the tax, which is why this option is the correct choice for “except.”

The key idea is understanding which kinds of travel qualify for the U.S. Flight Segment Tax exemptions. Some travel scenarios are specifically exempt from the tax—such as senior citizen discounts, active military travel, and group travel—so tickets in those cases aren’t taxed per flight segment. A companion ticket, however, does not fall under those exemptions and is subject to the Flight Segment Tax. In other words, companion tickets are not exempt from the tax, which is why this option is the correct choice for “except.”

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