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Airline taxes and other transportation funds in place for a few more months

September 16, 2011

Airline passengers won't get another shot at tax-free travel for a few more months.

Even if you didn't have to catch a flight back in late July and early August, you probably remember the transportation funding meltdown. It led to a halt in the collection of air travel taxes, as well as suspension of airport construction projects and the furlough of thousands of Federal Aviation Administration employees.

Congress approved a short-term, retroactive FAA funding bill on Aug. 5. That stop-gap measure was set to expire tonight.

There was some concern that partisan bickering over federal fuel taxes might mean a roadway repeat of the summer airport mess.  

Texaco vintage gas pump But after just a bit more political skirmishing, the House and Senate this week approved the Surface and Air Transportation Programs Extension Act of 2011.

This funding measure also is temporary, but it does provide enough money for the FAA to do its job through January 2012 and for Transportation Department highway improvement projects to continue through next March. 

In addition to OK'ing the collection of airline ticket taxes, the federal gasoline and diesel taxes will remain a part of the price that drivers pay at the pump. The automotive fuel taxes would have expired on Oct. 1.

President Obama signed the short-term funding bill into law this afternoon.

Happy, and taxable, travels everyone.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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