Tax code XA identifies which tax, charge or fee?

Prepare for the Airlines Reporting Corporation (ARC) Specialist Exam with flashcards and multiple choice questions. Each question is accompanied by hints and detailed explanations to help you excel in your exam preparation!

Multiple Choice

Tax code XA identifies which tax, charge or fee?

Explanation:
In ARC, tax codes map to specific charges, so you know exactly what is being collected and remitted. The code XA is assigned to the Passenger Facility Charge, an airport-imposed fee charged per passenger to fund airport facilities and improvements. It’s tracked separately from other airport-related charges, which have their own codes. So the XA designation specifically identifies the Passenger Facility Charge. Other items like the Airport Improvement Fee, security charges, and boarding fees are different charges with different codes, which is why XA points to the PFC.

In ARC, tax codes map to specific charges, so you know exactly what is being collected and remitted. The code XA is assigned to the Passenger Facility Charge, an airport-imposed fee charged per passenger to fund airport facilities and improvements. It’s tracked separately from other airport-related charges, which have their own codes. So the XA designation specifically identifies the Passenger Facility Charge. Other items like the Airport Improvement Fee, security charges, and boarding fees are different charges with different codes, which is why XA points to the PFC.

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