The rates for certain federal excise taxes (FET) and fees are on the way up for commercial transport operations booked after December 31, 2003. That includes transportation provided by Part 135 on-demand cargo and passenger operators. The new tax amounts to 7.5% of revenue for domestic overflights. Operators who are required to collect and remit the federal excise taxes imposed on certain commercial air transportation operations must implement the new rates for all applicable transportation occurring after December 31, 2003. These fees, along with all other components of the FET on transportation, do NOT apply to those few Part 135 aircraft operators who continue to meet the small aircraft exemption criteria.