§ 4263. Special rules

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1956

   Pub. L. 84–725 § 4(a) · 70 Stat. 554

   Enacted · 26 U.S.C. § 4263

   Added July 25, 1956, ch. 725, § 4(a), 70 Stat. 645, § 4264

   Source evidence

   Code source credit
   Added July 25, 1956, ch. 725, § 4(a), 70 Stat. 645, § 4264

2. 1962

   Tax Rate Extension Act of 1962

   Pub. L. 87–508 § 5(b) · 76 Stat. 114

   Changed · 26 U.S.C. § 4263(c)(3)

   Pub. L. 87–508 provided for payment of tax, in the case of transportation other than transportation described in section 4262(a)(1), to any person furnishing any portion of the transportation

   Source evidence

   Code amendment note
   Subsec. (c)(3). Pub. L. 87–508 provided for payment of tax, in the case of transportation other than transportation described in section 4262(a)(1), to any person furnishing any portion of the transportation.

   Enacted provision · exact public law section
   (b) Tax Applicable to Transportation of Persons by Air for Period November 16, 1962, to July 1, 1963.— Effective with respect to transportation beginning after November 15, 1962, subchapter C of chapter 33 of such Code (relating to the tax on the transportation of 26 USC 4261–4264. persons) is amended to read as follows: “Subchapter C— Transportation of Persons by Air “Sec. 4261. Imposition of tax. “Sec. 4262. Definition of taxable transportation. “Sec. 4263. Exemptions. “Sec. 4264. Special rules. “SEC. 4261. IMPOSITION OF TAX. “(a) Amounts Paid Within the United States.—There is hereby imposed upon the amount paid within the United States for taxable transportation (as defined in section 4262) of any person by air a tax Post, p. 116. equal to 5 percent of the amount, so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(b) Amounts Paid Outside the United States.— There is hereby imposed upon the amount paid without the United States for taxable transportation (as defined in section 4262) of any person by air, but only if such transportation begins and ends in the United States, a tax equal to 5 percent of the amount so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(c) Seats, Berths, etc.— There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation with respect to which a tax is imposed by subsection (a) or (b) a tax equivalent to 5 percent of the amount so paid in connection with transportation which begins after November 15, 1962, and before July 1, 1963. “(d) By Whom Paid.— Except as provided in section 4264, the taxes imposed by this section shall be paid by the person making the payment subject to the tax. “SEC. 4262. DEFINITION OF TAXABLE TRANSPORTATION. “(a) Taxable Transportation; in General.— For purposes of this subchapter, except as provided in subsection (b), the term ‘taxable transportation’ means— “(1) transportation which begins in the United States or in the 225-mile zone and ends in the United States or in the 225-mile zone; and “(2) in the case of transportation other than transportation described in paragraph (1), that portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c)(3)). “(b) Exclusion of Certain Travel.— For purposes of this subchapter, the term ‘taxable transportation’ does not include that portion of any transportation which meets all 4 of the following requirements: “(1) such portion is outside the United States; “(2) neither such portion nor any segment thereof is directly or indirectly— “(A) between (i) a point where the route of the transportation leaves or enters the continental United States, or (ii) a port or station in the 225-mile zone, and “(B) a port or station in the 225-mile zone; “(3) such portion— “(A) begins at either (i) the point where the route of the transportation leaves the United States, or (ii) a port or station in the 225-mile zone, and “(B) ends at either (i) the point where the route of the transportation enters the United States, or (ii) a port or station in the 225-mile zone; and “(4) a direct line from the point (or the port or station) specified in paragraph (3)(A), to the point (or the port or station) specified in paragraph (3)(B), passes through or over a point which is not within 225 miles of the United States. “(c) Definitions.— For purposes of this section— “(1) Continental united states.— The term ‘continental United States’ means the District of Columbia and the States other than Alaska and Hawaii. “(2) 225-mile zone.— The term ‘225-mile zone’ means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States. “(3) Uninterrupted international air transportation.— The term ‘uninterrupted international air transportation’ means any transportation by air which is not transportation described in subsection (a)(1) and in which— “(A) the scheduled interval between (i) the beginning or end of the portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States and (ii) the end or beginning of the other portion of such transportation is not more than 6 hours, and “(B) the scheduled interval between the beginning or end and the end or beginning of any two segments of the portion of such transportation referred to in subparagraph (A)(i) is not more than 6 hours. “SEC. 4263. EXEMPTIONS. “(a) Commutation Travel, etc.— The tax imposed by section 4261 Ante, p. 115. shall not apply to amounts paid for transportation which do not exceed 60 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less. “(b) Certain Organizations.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished to an international organization, or any corporation created by Act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864. 22 Stat. 940. “(c) Members of the Armed Forces.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished under special tariffs providing for fares of not more than 2.5 cents per mile applicable to round-trip tickets sold to personnel of the United States Army, Air Force, Navy, Marine Corps, and Coast Guard traveling in uniform of the United States at their own expense when on official leave, furlough, or pass, including authorized cadets and midshipmen, issued on presentation of properly executed certificate. “(d) Small Aircraft on Nonestablished Lines.— The tax imposed by section 4261 shall not apply to transportation by aircraft having— “(1) a gross takeoff weight (as determined under regulations prescribed by the Secretary or his delegate) of less than 12,500 pounds, and “(2) a passenger seating capacity of less than ten adult passengers, including the pilot, except when such aircraft is operated on an established line. “SEC. 4264. SPECIAL RULES. “(a) Payments Made Outside the United States for Prepaid Orders.— If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax. “(b) Tax Deducted Upon Refunds.— Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261 shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary or his delegate the amount of any such tax remaining uncollected. “(c) Payment of Tax.— Where any tax imposed by section 4261 is not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary or his delegate, to the extent that such tax is not collected under any other provision of this subchapter— “(1) such tax shall be paid by the person paying for the transportation or by the person using the transportation; “(2) such tax shall be paid within such time as the Secretary or his delegate shall prescribe by regulations after whichever of the following first occurs: “(A) the rights to the transportation expire; or “(B) the time when the transportation becomes subject to tax; and “(3) payment of such tax shall be made to the Secretary or his delegate, to the person to whom the payment for transportation was made, or, in the case of transportation Ante, p. 116. other than transportation described in section 4262(a)(1), to any person furnishing any portion of such transportation. “(d) Application of Tax.— The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary or his delegate, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261. “(e) Round Trips.— In applying this subchapter to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. “(f) Transportation Outside the Northern Portion of the Western Hemisphere.— In applying this subchapter to transportation any part of which is outside the northern portion of the. Western Hemisphere, if the route of such transportation leaves and reenters the northern portion of the Western Hemisphere, such transportation shall be considered to consist of transportation to a point outside such northern portion, and of separate transportation thereafter. For purposes of this subsection, the term ‘northern portion of the Western femisphere’ means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America.”

3. 1962

   Tax Rate Extension Act of 1962

   Pub. L. 87–508 § 5(b) · 76 Stat. 114

   Inserted · 26 U.S.C. § 4263(d)

   Pub. L. 87–508 inserted “by air” after “transportation of any person”

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 87–508 inserted “by air” after “transportation of any person”.

   Enacted provision · exact public law section
   (b) Tax Applicable to Transportation of Persons by Air for Period November 16, 1962, to July 1, 1963.— Effective with respect to transportation beginning after November 15, 1962, subchapter C of chapter 33 of such Code (relating to the tax on the transportation of 26 USC 4261–4264. persons) is amended to read as follows: “Subchapter C— Transportation of Persons by Air “Sec. 4261. Imposition of tax. “Sec. 4262. Definition of taxable transportation. “Sec. 4263. Exemptions. “Sec. 4264. Special rules. “SEC. 4261. IMPOSITION OF TAX. “(a) Amounts Paid Within the United States.—There is hereby imposed upon the amount paid within the United States for taxable transportation (as defined in section 4262) of any person by air a tax Post, p. 116. equal to 5 percent of the amount, so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(b) Amounts Paid Outside the United States.— There is hereby imposed upon the amount paid without the United States for taxable transportation (as defined in section 4262) of any person by air, but only if such transportation begins and ends in the United States, a tax equal to 5 percent of the amount so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(c) Seats, Berths, etc.— There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation with respect to which a tax is imposed by subsection (a) or (b) a tax equivalent to 5 percent of the amount so paid in connection with transportation which begins after November 15, 1962, and before July 1, 1963. “(d) By Whom Paid.— Except as provided in section 4264, the taxes imposed by this section shall be paid by the person making the payment subject to the tax. “SEC. 4262. DEFINITION OF TAXABLE TRANSPORTATION. “(a) Taxable Transportation; in General.— For purposes of this subchapter, except as provided in subsection (b), the term ‘taxable transportation’ means— “(1) transportation which begins in the United States or in the 225-mile zone and ends in the United States or in the 225-mile zone; and “(2) in the case of transportation other than transportation described in paragraph (1), that portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c)(3)). “(b) Exclusion of Certain Travel.— For purposes of this subchapter, the term ‘taxable transportation’ does not include that portion of any transportation which meets all 4 of the following requirements: “(1) such portion is outside the United States; “(2) neither such portion nor any segment thereof is directly or indirectly— “(A) between (i) a point where the route of the transportation leaves or enters the continental United States, or (ii) a port or station in the 225-mile zone, and “(B) a port or station in the 225-mile zone; “(3) such portion— “(A) begins at either (i) the point where the route of the transportation leaves the United States, or (ii) a port or station in the 225-mile zone, and “(B) ends at either (i) the point where the route of the transportation enters the United States, or (ii) a port or station in the 225-mile zone; and “(4) a direct line from the point (or the port or station) specified in paragraph (3)(A), to the point (or the port or station) specified in paragraph (3)(B), passes through or over a point which is not within 225 miles of the United States. “(c) Definitions.— For purposes of this section— “(1) Continental united states.— The term ‘continental United States’ means the District of Columbia and the States other than Alaska and Hawaii. “(2) 225-mile zone.— The term ‘225-mile zone’ means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States. “(3) Uninterrupted international air transportation.— The term ‘uninterrupted international air transportation’ means any transportation by air which is not transportation described in subsection (a)(1) and in which— “(A) the scheduled interval between (i) the beginning or end of the portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States and (ii) the end or beginning of the other portion of such transportation is not more than 6 hours, and “(B) the scheduled interval between the beginning or end and the end or beginning of any two segments of the portion of such transportation referred to in subparagraph (A)(i) is not more than 6 hours. “SEC. 4263. EXEMPTIONS. “(a) Commutation Travel, etc.— The tax imposed by section 4261 Ante, p. 115. shall not apply to amounts paid for transportation which do not exceed 60 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less. “(b) Certain Organizations.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished to an international organization, or any corporation created by Act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864. 22 Stat. 940. “(c) Members of the Armed Forces.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished under special tariffs providing for fares of not more than 2.5 cents per mile applicable to round-trip tickets sold to personnel of the United States Army, Air Force, Navy, Marine Corps, and Coast Guard traveling in uniform of the United States at their own expense when on official leave, furlough, or pass, including authorized cadets and midshipmen, issued on presentation of properly executed certificate. “(d) Small Aircraft on Nonestablished Lines.— The tax imposed by section 4261 shall not apply to transportation by aircraft having— “(1) a gross takeoff weight (as determined under regulations prescribed by the Secretary or his delegate) of less than 12,500 pounds, and “(2) a passenger seating capacity of less than ten adult passengers, including the pilot, except when such aircraft is operated on an established line. “SEC. 4264. SPECIAL RULES. “(a) Payments Made Outside the United States for Prepaid Orders.— If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax. “(b) Tax Deducted Upon Refunds.— Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261 shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary or his delegate the amount of any such tax remaining uncollected. “(c) Payment of Tax.— Where any tax imposed by section 4261 is not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary or his delegate, to the extent that such tax is not collected under any other provision of this subchapter— “(1) such tax shall be paid by the person paying for the transportation or by the person using the transportation; “(2) such tax shall be paid within such time as the Secretary or his delegate shall prescribe by regulations after whichever of the following first occurs: “(A) the rights to the transportation expire; or “(B) the time when the transportation becomes subject to tax; and “(3) payment of such tax shall be made to the Secretary or his delegate, to the person to whom the payment for transportation was made, or, in the case of transportation Ante, p. 116. other than transportation described in section 4262(a)(1), to any person furnishing any portion of such transportation. “(d) Application of Tax.— The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary or his delegate, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261. “(e) Round Trips.— In applying this subchapter to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. “(f) Transportation Outside the Northern Portion of the Western Hemisphere.— In applying this subchapter to transportation any part of which is outside the northern portion of the. Western Hemisphere, if the route of such transportation leaves and reenters the northern portion of the Western Hemisphere, such transportation shall be considered to consist of transportation to a point outside such northern portion, and of separate transportation thereafter. For purposes of this subsection, the term ‘northern portion of the Western femisphere’ means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America.”

4. 1962

   Tax Rate Extension Act of 1962

   Pub. L. 87–508 § 5(b) · 76 Stat. 114

   Substituted · 26 U.S.C. § 4263(e)

   Pub. L. 87–508 substituted “subchapter” for “part”

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 87–508 substituted “subchapter” for “part”.

   Enacted provision · exact public law section
   (b) Tax Applicable to Transportation of Persons by Air for Period November 16, 1962, to July 1, 1963.— Effective with respect to transportation beginning after November 15, 1962, subchapter C of chapter 33 of such Code (relating to the tax on the transportation of 26 USC 4261–4264. persons) is amended to read as follows: “Subchapter C— Transportation of Persons by Air “Sec. 4261. Imposition of tax. “Sec. 4262. Definition of taxable transportation. “Sec. 4263. Exemptions. “Sec. 4264. Special rules. “SEC. 4261. IMPOSITION OF TAX. “(a) Amounts Paid Within the United States.—There is hereby imposed upon the amount paid within the United States for taxable transportation (as defined in section 4262) of any person by air a tax Post, p. 116. equal to 5 percent of the amount, so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(b) Amounts Paid Outside the United States.— There is hereby imposed upon the amount paid without the United States for taxable transportation (as defined in section 4262) of any person by air, but only if such transportation begins and ends in the United States, a tax equal to 5 percent of the amount so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(c) Seats, Berths, etc.— There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation with respect to which a tax is imposed by subsection (a) or (b) a tax equivalent to 5 percent of the amount so paid in connection with transportation which begins after November 15, 1962, and before July 1, 1963. “(d) By Whom Paid.— Except as provided in section 4264, the taxes imposed by this section shall be paid by the person making the payment subject to the tax. “SEC. 4262. DEFINITION OF TAXABLE TRANSPORTATION. “(a) Taxable Transportation; in General.— For purposes of this subchapter, except as provided in subsection (b), the term ‘taxable transportation’ means— “(1) transportation which begins in the United States or in the 225-mile zone and ends in the United States or in the 225-mile zone; and “(2) in the case of transportation other than transportation described in paragraph (1), that portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c)(3)). “(b) Exclusion of Certain Travel.— For purposes of this subchapter, the term ‘taxable transportation’ does not include that portion of any transportation which meets all 4 of the following requirements: “(1) such portion is outside the United States; “(2) neither such portion nor any segment thereof is directly or indirectly— “(A) between (i) a point where the route of the transportation leaves or enters the continental United States, or (ii) a port or station in the 225-mile zone, and “(B) a port or station in the 225-mile zone; “(3) such portion— “(A) begins at either (i) the point where the route of the transportation leaves the United States, or (ii) a port or station in the 225-mile zone, and “(B) ends at either (i) the point where the route of the transportation enters the United States, or (ii) a port or station in the 225-mile zone; and “(4) a direct line from the point (or the port or station) specified in paragraph (3)(A), to the point (or the port or station) specified in paragraph (3)(B), passes through or over a point which is not within 225 miles of the United States. “(c) Definitions.— For purposes of this section— “(1) Continental united states.— The term ‘continental United States’ means the District of Columbia and the States other than Alaska and Hawaii. “(2) 225-mile zone.— The term ‘225-mile zone’ means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States. “(3) Uninterrupted international air transportation.— The term ‘uninterrupted international air transportation’ means any transportation by air which is not transportation described in subsection (a)(1) and in which— “(A) the scheduled interval between (i) the beginning or end of the portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States and (ii) the end or beginning of the other portion of such transportation is not more than 6 hours, and “(B) the scheduled interval between the beginning or end and the end or beginning of any two segments of the portion of such transportation referred to in subparagraph (A)(i) is not more than 6 hours. “SEC. 4263. EXEMPTIONS. “(a) Commutation Travel, etc.— The tax imposed by section 4261 Ante, p. 115. shall not apply to amounts paid for transportation which do not exceed 60 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less. “(b) Certain Organizations.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished to an international organization, or any corporation created by Act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864. 22 Stat. 940. “(c) Members of the Armed Forces.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished under special tariffs providing for fares of not more than 2.5 cents per mile applicable to round-trip tickets sold to personnel of the United States Army, Air Force, Navy, Marine Corps, and Coast Guard traveling in uniform of the United States at their own expense when on official leave, furlough, or pass, including authorized cadets and midshipmen, issued on presentation of properly executed certificate. “(d) Small Aircraft on Nonestablished Lines.— The tax imposed by section 4261 shall not apply to transportation by aircraft having— “(1) a gross takeoff weight (as determined under regulations prescribed by the Secretary or his delegate) of less than 12,500 pounds, and “(2) a passenger seating capacity of less than ten adult passengers, including the pilot, except when such aircraft is operated on an established line. “SEC. 4264. SPECIAL RULES. “(a) Payments Made Outside the United States for Prepaid Orders.— If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax. “(b) Tax Deducted Upon Refunds.— Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261 shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary or his delegate the amount of any such tax remaining uncollected. “(c) Payment of Tax.— Where any tax imposed by section 4261 is not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary or his delegate, to the extent that such tax is not collected under any other provision of this subchapter— “(1) such tax shall be paid by the person paying for the transportation or by the person using the transportation; “(2) such tax shall be paid within such time as the Secretary or his delegate shall prescribe by regulations after whichever of the following first occurs: “(A) the rights to the transportation expire; or “(B) the time when the transportation becomes subject to tax; and “(3) payment of such tax shall be made to the Secretary or his delegate, to the person to whom the payment for transportation was made, or, in the case of transportation Ante, p. 116. other than transportation described in section 4262(a)(1), to any person furnishing any portion of such transportation. “(d) Application of Tax.— The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary or his delegate, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261. “(e) Round Trips.— In applying this subchapter to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. “(f) Transportation Outside the Northern Portion of the Western Hemisphere.— In applying this subchapter to transportation any part of which is outside the northern portion of the. Western Hemisphere, if the route of such transportation leaves and reenters the northern portion of the Western Hemisphere, such transportation shall be considered to consist of transportation to a point outside such northern portion, and of separate transportation thereafter. For purposes of this subsection, the term ‘northern portion of the Western femisphere’ means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America.”

5. 1962

   Tax Rate Extension Act of 1962

   Pub. L. 87–508 § 5(b) · 76 Stat. 114

   1. Substituted · 26 U.S.C. § 4263(f)

      Pub. L. 87–508 substituted “subchapter” for “part”

   2. Struck · 26 U.S.C. § 4263(f)

      Pub. L. 87–508 struck out par. (1) designation for provision respecting transportation outside the northern portion of the Western Hemisphere and par. (2) prohibiting consideration as a stop at a port within the United States a stop at an intermediate port at which vessel is not authorized to discharge and take on passengers

   Source evidence

   Code amendment note
   Subsec. (f). Pub. L. 87–508 substituted “subchapter” for “part”, struck out par. (1) designation for provision respecting transportation outside the northern portion of the Western Hemisphere and par. (2) prohibiting consideration as a stop at a port within the United States a stop at an intermediate port at which vessel is not authorized to discharge and take on passengers.

   Enacted provision · exact public law section
   (b) Tax Applicable to Transportation of Persons by Air for Period November 16, 1962, to July 1, 1963.— Effective with respect to transportation beginning after November 15, 1962, subchapter C of chapter 33 of such Code (relating to the tax on the transportation of 26 USC 4261–4264. persons) is amended to read as follows: “Subchapter C— Transportation of Persons by Air “Sec. 4261. Imposition of tax. “Sec. 4262. Definition of taxable transportation. “Sec. 4263. Exemptions. “Sec. 4264. Special rules. “SEC. 4261. IMPOSITION OF TAX. “(a) Amounts Paid Within the United States.—There is hereby imposed upon the amount paid within the United States for taxable transportation (as defined in section 4262) of any person by air a tax Post, p. 116. equal to 5 percent of the amount, so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(b) Amounts Paid Outside the United States.— There is hereby imposed upon the amount paid without the United States for taxable transportation (as defined in section 4262) of any person by air, but only if such transportation begins and ends in the United States, a tax equal to 5 percent of the amount so paid for transportation which begins after November 15, 1962, and before July 1, 1963. “(c) Seats, Berths, etc.— There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation with respect to which a tax is imposed by subsection (a) or (b) a tax equivalent to 5 percent of the amount so paid in connection with transportation which begins after November 15, 1962, and before July 1, 1963. “(d) By Whom Paid.— Except as provided in section 4264, the taxes imposed by this section shall be paid by the person making the payment subject to the tax. “SEC. 4262. DEFINITION OF TAXABLE TRANSPORTATION. “(a) Taxable Transportation; in General.— For purposes of this subchapter, except as provided in subsection (b), the term ‘taxable transportation’ means— “(1) transportation which begins in the United States or in the 225-mile zone and ends in the United States or in the 225-mile zone; and “(2) in the case of transportation other than transportation described in paragraph (1), that portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c)(3)). “(b) Exclusion of Certain Travel.— For purposes of this subchapter, the term ‘taxable transportation’ does not include that portion of any transportation which meets all 4 of the following requirements: “(1) such portion is outside the United States; “(2) neither such portion nor any segment thereof is directly or indirectly— “(A) between (i) a point where the route of the transportation leaves or enters the continental United States, or (ii) a port or station in the 225-mile zone, and “(B) a port or station in the 225-mile zone; “(3) such portion— “(A) begins at either (i) the point where the route of the transportation leaves the United States, or (ii) a port or station in the 225-mile zone, and “(B) ends at either (i) the point where the route of the transportation enters the United States, or (ii) a port or station in the 225-mile zone; and “(4) a direct line from the point (or the port or station) specified in paragraph (3)(A), to the point (or the port or station) specified in paragraph (3)(B), passes through or over a point which is not within 225 miles of the United States. “(c) Definitions.— For purposes of this section— “(1) Continental united states.— The term ‘continental United States’ means the District of Columbia and the States other than Alaska and Hawaii. “(2) 225-mile zone.— The term ‘225-mile zone’ means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States. “(3) Uninterrupted international air transportation.— The term ‘uninterrupted international air transportation’ means any transportation by air which is not transportation described in subsection (a)(1) and in which— “(A) the scheduled interval between (i) the beginning or end of the portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States and (ii) the end or beginning of the other portion of such transportation is not more than 6 hours, and “(B) the scheduled interval between the beginning or end and the end or beginning of any two segments of the portion of such transportation referred to in subparagraph (A)(i) is not more than 6 hours. “SEC. 4263. EXEMPTIONS. “(a) Commutation Travel, etc.— The tax imposed by section 4261 Ante, p. 115. shall not apply to amounts paid for transportation which do not exceed 60 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less. “(b) Certain Organizations.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished to an international organization, or any corporation created by Act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864. 22 Stat. 940. “(c) Members of the Armed Forces.— The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished under special tariffs providing for fares of not more than 2.5 cents per mile applicable to round-trip tickets sold to personnel of the United States Army, Air Force, Navy, Marine Corps, and Coast Guard traveling in uniform of the United States at their own expense when on official leave, furlough, or pass, including authorized cadets and midshipmen, issued on presentation of properly executed certificate. “(d) Small Aircraft on Nonestablished Lines.— The tax imposed by section 4261 shall not apply to transportation by aircraft having— “(1) a gross takeoff weight (as determined under regulations prescribed by the Secretary or his delegate) of less than 12,500 pounds, and “(2) a passenger seating capacity of less than ten adult passengers, including the pilot, except when such aircraft is operated on an established line. “SEC. 4264. SPECIAL RULES. “(a) Payments Made Outside the United States for Prepaid Orders.— If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax. “(b) Tax Deducted Upon Refunds.— Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261 shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary or his delegate the amount of any such tax remaining uncollected. “(c) Payment of Tax.— Where any tax imposed by section 4261 is not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary or his delegate, to the extent that such tax is not collected under any other provision of this subchapter— “(1) such tax shall be paid by the person paying for the transportation or by the person using the transportation; “(2) such tax shall be paid within such time as the Secretary or his delegate shall prescribe by regulations after whichever of the following first occurs: “(A) the rights to the transportation expire; or “(B) the time when the transportation becomes subject to tax; and “(3) payment of such tax shall be made to the Secretary or his delegate, to the person to whom the payment for transportation was made, or, in the case of transportation Ante, p. 116. other than transportation described in section 4262(a)(1), to any person furnishing any portion of such transportation. “(d) Application of Tax.— The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary or his delegate, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261. “(e) Round Trips.— In applying this subchapter to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. “(f) Transportation Outside the Northern Portion of the Western Hemisphere.— In applying this subchapter to transportation any part of which is outside the northern portion of the. Western Hemisphere, if the route of such transportation leaves and reenters the northern portion of the Western Hemisphere, such transportation shall be considered to consist of transportation to a point outside such northern portion, and of separate transportation thereafter. For purposes of this subsection, the term ‘northern portion of the Western femisphere’ means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America.”

6. 1976

   Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520

   Struck · 26 U.S.C. § 4263(b)(d)

   Pub. L. 94–455 struck out “or his delegate” after “Secretary”

   Source evidence

   Code amendment note
   Subsecs. (b) to (d). Pub. L. 94–455 struck out “or his delegate” after “Secretary”.

   Enacted provision · exact public law section
   (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

7. 1997

   Pub. L. 105–34 title X § 1031(c)(3) · 111 Stat. 788

   Substituted · 26 U.S.C. § 4263(c)

   Pub. L. 105–34 substituted “subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States.” for “subchapter—

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 105–34 substituted “subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States.” for “subchapter—

   “(1) such tax shall be paid by the person paying for the transportation or by the person using the transportation; “(2) such tax shall be paid within such time as the Secretary shall prescribe by regulations after whichever of the following first occurs: “(A) the rights to the transportation expire; or “(B) the time when the transportation becomes subject to tax; and “(3) payment of such tax shall be made to the Secretary, to the person to whom the payment for transportation was made, or, in the case of transportation other than transportation described in section 4262(a)(1), to any person furnishing any portion of such transportation.”

   Enacted provision · exact public law section
   (3) Secondary liability of carrier for unpaid tax.— Subsection (c) of section 4263 is amended by striking “subchapter—” and all that follows and inserting “subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States.”.

   Effective date note
   Amendment by Pub. L. 105–34 applicable to transportation beginning on or after Oct. 1, 1997, with special rule for applicability to amounts paid before Oct. 1, 1997, see section 1031(e)(2) of Pub. L. 105–34, set out as a note under section 4261 of this title.

7 of 8 references resolved to an enrolled provision · 1 partial