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New tax to fly from IAH clears first hurdle

10:38 AM CDT on Wednesday, April 23, 2008

By Lee McGuire / 11 News

HOUSTON -- Bush Intercontinental Airport is trying to do what nearly all large airports in the country already do: Charge passengers an extra fee to fly in and out.

Under a plan approved Wednesday by the Houston City Council, IAH will soon impose a $3 passenger facility fee if it’s approved by the FAA. Airport administrators said the approval process typically takes a few months.

Airlines would charge the fee when passengers book tickets that depart from or land at IAH. They would then pass the money on to the Houston Airport System. The funding would help pay for a $1.2 billion reconstruction of Terminal B and its parking garages.

Just who pays the "passenger facility charge" is based on a somewhat complex formula. Federal Aviation Administration rules allow the charge to be imposed at the first two airports a traveler encounters on each direction of their journey. For example, if someone were flying round trip from Houston to Boston, they would pay the charge four times – once for each airport. However, if that person were connecting in Detroit, they would still pay the fee four times – once in Houston, again in Detroit, but not when they land in Boston. When that person flew home, they would pay it in Boston and Detroit, but not in Houston.

Further complicating things, some airports charge a $4.50 passenger facility charge, while others charge $3. Under federal rules, the $3 charge can only go to increase airport capacity, efficiency and airport safety.

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