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Federal Register/Vol. 69, No. 37/Wednesday, February 25, 2004

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Federal Register/Vol. 69, No. 37/Wednesday, February 25, 2004 Federal Register / Vol. 69, No. 37 / Wednesday, February 25, 2004 / Notices 8727 providing the service. They also argue that extended beyond bypass mail. We agree, but 14. Hageland. since excise taxes are paid when the sale is the Postal Service can undertake its own data 15. Iliamna. made, they may not reflect when passengers collection as necessary to administer its 16. Inland. or freight are actually transported and the tender policy for non-priority, non-bypass 17. Island (Redemption). revenue earned. Warbelow’s Air Ventures mail. Of course, consistent with our rules, all 18. LAB. (Warbelow’s) notes that excise taxes are a carriers are still required to report the T–100 19. Larry’s Flying Service. straight percentage of revenue,7 so in lieu of passenger and freight traffic, even those that 20. Olson. directly reporting excise taxes by each do not transport any bypass mail. 21. Peninsula. market, carriers could meet the requirements Additional Reports, Appendix B 22. Promech. of the law by reporting revenue by market. 23. Servant. We note too that for the freight pool, unlike Larry’s Flying Service recommends that the 24. Skagway. the passenger pool, RSIA permits the Postal Department have carriers report a more 25. Smokey Bay. Service to use either the weight of the freight detailed income statement, in lieu of excise 26. Spernak. transported in the market, as reported on the taxes, stating: ‘‘Scheduled passenger revenue 27. Tanana. T–100, or the associated revenue to follows the Net Income line on [Schedule F– 28. Taquan. determine qualification for tender, and this 1 and] should not be flawed by any code- 29. Tatonduk (Everts). further supports our tentative decision to sharing or ticket stock issued by other 30. Warbelows Air Ventures. airlines. If reported accurately, this should require the reporting of revenue. 31. Wings of Alaska. give the same or better information as would While we recognize that the statute is 32. Wright Air Service. a creative exercise with excise taxes. We designed to ensure accurate mail tender by 33. Yute. the Postal Service and is not our primary would not be averse to an added line for responsibility to interpret, we believe the passenger charter revenue or (taxable) freight [FR Doc. 04–4169 Filed 2–24–04; 8:45 am] carriers raise serious problems with revenue as well.’’ BILLING CODE 4910–62–P implementation of the excise tax report. We Again, we think RSIA imposes ultimate will continue to consider those concerns, but responsibility for data use on the Postal tentatively require that carriers report the Service. While we consider this additional DEPARTMENT OF TRANSPORTATION data described in Appendix A on an interim concern, this revised interim Schedule F–1 basis. Since excise tax is a straight percentage will serve as a proxy. Moreover, it requires Federal Aviation Administration of revenue, rather than directly reporting minimal additional detail, will tentatively be excise taxes by market, the same goal can be submitted quarterly, not monthly, beginning Advisory Circular 23.629–1B, Flutter with the QE 9/30/02, and is shown in accomplished by reporting revenue by 9 market. Because the Postal Service has said Appendix B. Under the RSIA, Freight AGENCY: Federal Aviation Revenue is an alternate way to rank carriers it will tender mail based on annual results, Administration (FAA), DOT. for inclusion in the freight pool. Also, having perhaps updated every three months, it Charter Revenue will be useful as a check on ACTION: Notice of availability of would serve no purpose to collect this carrier reporting, because many carriers are proposed advisory circular (AC) and information by month, so we will require currently claiming that other operators are request for comments. only quarterly submissions of the data in misclassifying charter passenger and freight Appendix A. The information (consistent operations as scheduled service.10 We will SUMMARY: This notice announces the with the overall intent of the law) is to be also tentatively require carriers to report, made public and will accordingly be placed availability of and requests comments from the first page of IRS Form 720, system on the BTS Web site. As with the T–100 On- on a proposed revision to AC 23.629– excise taxes for persons by air and property Flight O&D reports, which it crosschecks, we 1B. This proposed revision adds by air, beginning with QE 9/30/02. It is very guidance for showing compliance to will afford carriers a 15-day grace period after easily reported, and should enable us to the information is published on the BTS Web conduct reviews of carriers to pinpoint where § 23.629, flutter (including divergence, site to report corrections. We believe this on-site reviews might be required or where and control reversal) of part 23 interim reporting, along with that in the Postal Service should be alerted to a airplanes. This notice is necessary to Appendix B, will fully accomplish the intent potential problem. We will hold confidential allow the public the opportunity to of the legislation and considerably lessen the the information on Form 720. comment on the proposed AC. carriers’ reporting burden. The intent of this part of the legislation is Appendix D—Carriers Transporting DATES: Comments must be received on to substantiate passenger and freight counts, Intra-Alaska Bush Mail as of February or before April 26, 2004. and to reward carriers that transport 1, 2004 ADDRESSES: Send all comments on the significant passenger and freight levels with proposed AC to: Federal Aviation mail tender. Thus, carriers that do not expect 1. 40-Mile Air. 2. Alaska Central Express (ACE). Administration, Small Airplane to qualify for bypass mail do not need to Directorate, Aircraft Certification submit the data on Appendix A. 3. Alaska Seaplane. We note that the Postal Service has said 4. Arctic Circle. Service, Regulations and Policy (ACE– that it intends to modify its tender of non- 5. Arctic Transportation Services (ATS). 111), 901 Locust Street, Kansas City, priority, non-bypass mail to conform with the 6. Baker. Missouri 64106. RSIA requirements for tender of bypass mail, 7. Bellair. FOR FURTHER INFORMATION CONTACT: Mr. 8. Bering. even though the RSIA does not so require. Mark James, Standards Office, Small 8 9. Camai (Village). The Consolidated Carriers object, stating Airplane Directorate, Aircraft that any special RSIA reporting cannot be 10.Cape Smythe. 11. ERA Aviation. Certification Service, Kansas City, 12. Frontier Flying Service. Missouri 64106, telephone (816) 329– 7 Excise tax is applied at 7.5% of passenger revenue and 6.25% of freight revenue. In addition, 13. Grant. 4137 fax (816) 329–4090. at a few non-rural airports in Alaska, carriers collect SUPPLEMENTARY INFORMATION: Any an excise tax of $3 per segment. Charter revenue is 9 The only additional data that must be submitted person may obtain a copy of this taxed similarly to scheduled revenue, except that are charter revenue, mail revenue, and freight aircraft with certificated take-off weight of less than revenue. The other additional lines are simply proposed AC by contacting the person 6,000 pounds are not taxed unless they operate with subtotals and totals of those data. named above under FOR FURTHER some degree of regularity between definite points. 10 We believe Department instructions are clear: INFORMATION CONTACT. A copy of the 8 The Consolidated Carriers consist of: Alaska charter operations, including part charters, are proposed AC will also be available on Seaplane, Baker, Bellair, Cape Smythe, Grant, those where customer(s) contract for the entire Iliamna, Island Air, Katmai, LAB, Larry’s Flying plane, without individual tickets or waybills. the Internet at http:// Service, Olson, Servant, Skagway, Smokey Bay, Comparing flight regularity with scheduled service www.airweb.faa.gov/AC within a few Tanana, Taquan, Wings, and Wright. is often not determinative in Alaska. days. VerDate jul<14>2003 16:15 Feb 24, 2004 Jkt 203001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 E:\FR\FM\25FEN1.SGM 25FEN1 8728 Federal Register / Vol. 69, No. 37 / Wednesday, February 25, 2004 / Notices Comments Invited: We invite number involved and must be received DEPARTMENT OF TRANSPORTATION interested parties to submit comments on or before March 8, 2004. on the proposed AC. Commenters must ADDRESSES: You may submit comments Federal Aviation Administration identify AC 23.629–1B and submit [identified by DOT DMS Docket Number comments to the address specified FAA–200X–XXXXX] by any of the [Summary Notice No. PE–2004–11] above. The FAA will consider all following methods: communications received on or before • Web site: http://dms.dot.gov. Petitions for Exemption; Dispositions the closing date for comments before Follow the instructions for submitting of Petitions Issued issuing the final AC. The proposed AC comments on the DOT electronic docket and comments received may be site. AGENCY: Federal Aviation inspected at the Standards Office (ACE– • Fax: 1–202–493–2251. Administration (FAA), DOT. 110), 901 Locust, Room 301, Kansas • Mail: Docket Management Facility; City, Missouri, between the hours of U.S. Department of Transportation, 400 ACTION: Notice of dispositions of prior 8:30 and 4 p.m. weekdays, except Seventh Street, SW., Nassif Building, petitions. Federal holidays by making an Room PL–401, Washington, DC 20590– appointment in advance with the person 001. SUMMARY: Pursuant to FAA’s rulemaking listed under FOR FURTHER INFORMATION • Hand Delivery: Room PL–401 on provisions governing the application, CONTACT. the plaza level of the Nassif Building, processing, and disposition of petitions Background: When issued, AC 400 Seventh Street, SW., Washington, for exemption part 11 of Title 14, Code 23.629–1B, Means of Compliance with DC, between 9 a.m. and 5 p.m., Monday of Federal Regulations (14 CFR), this section 23.629, Flutter, will replace AC through Friday, except Federal notice contains the dispositions of 23.629–1A, Means of Compliance with Holidays.
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