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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>I have been receiving several emails regarding the refund of airline ticket taxes in regards to the recent FAA partial shutdown. Below is the latest from the IRS (as of today). The IRS stating the people who traveled between July 23, 2011 and August 8, 2011 <u>are not entitled to any refunds</u>. Some airlines (US Airways and Delta) indicated that they will refund travelers for any taxes collected dependent upon the IRS ruling. With the IRS ruling that travelers are not entitled to any refunds, it will be up to the airline to decide whether or not to process refunds. Neither airline has commented yet on this ruling.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>Alaska, Frontier and Spirit Airlines did not raise fares to match the taxes during the FAA partial shutdown. <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'>It is unlikely that none of the other airlines will offer any refunds.<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width="98%" style='width:98.0%'><tr><td style='padding:0in 0in 0in 0in'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><a name=skiptocontent></a><b><span style='font-size:10.5pt;font-family:"Arial","sans-serif";color:#001E5A'>Reinstatement of Airline Ticket Taxes<o:p></o:p></span></b></p></td></tr><tr><td style='padding:0in 4.5pt 0in 0in'><p class=MsoNormal style='line-height:10.5pt'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:black'> <o:p></o:p></span></p></td></tr><tr><td style='padding:0in 0in 0in 0in'><div align=center><table class=MsoNormalTable border=0 cellpadding=0><tr><td style='padding:.75pt .75pt .75pt .75pt'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#001E5A'>IRS Statement on Airline Ticket Taxes<o:p></o:p></span></b></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:black'>Aug. 5, 2011<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:black'>Today’s Congressional action extending the Federal Aviation Administration authorization reinstates retroactively the airline ticket taxes for passengers who traveled during the lapse of the FAA's authorization. As a result of the bill Congress passed today, passengers who purchased tickets prior to July 23 and traveled between July 23 and the date of enactment of today’s legislation are not entitled to a refund of the airline ticket excise tax. Additionally, the IRS intends to provide relief for passengers and airlines with respect to ticket taxes that were not paid or collected because of the lapse.<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:black'>The IRS intends to provide guidance to the airlines which will allow for an orderly restart of the collection of ticket taxes. Airlines will have from the time of enactment of the legislation through 12:01 a.m. on Monday, Aug. 8, to resume collection of the ticket taxes.<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:black'>The IRS is currently reviewing other effects of the legislation and will issue future guidance.<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:10.5pt'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:black'> <o:p></o:p></span></p></td></tr></table></div></td></tr></table><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>Tim A. Hay, CPPB, CGTP, OPAC, OPBC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>Lead State Procurement Analyst<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>DAS State Procurement Office<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>1225 Ferry St SE U140<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>Salem, OR 97301-4285<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>Ph. 503-378-4650<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>Fax. 503-373-1626<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'><a href="mailto:tim.hay@state.or.us"><span style='color:blue'>tim.hay@state.or.us</span></a><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>************************************************************************<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>DAS State Procurement Office Mission:<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>"Demonstrate and provide leadership through innovative, responsive, and accountable public procurement services.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>************************************************************************<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>Please consider the environment before printing this email.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.5pt;font-family:"Arial","sans-serif"'>This message, including any attachments or links, may contain privileged, confidential and/or legally protected information. Any distribution or use of this communication by anyone other than the intended recipient is strictly prohibited. If you have received this communication in error, please notify the sender immediately by replying to this message and then delete all copies of the original communication including any attachments and/or links.<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>