Internal Revenue Code:Sec. 4262. Definition of taxable transportation

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 33 - FACILITIES AND SERVICES
        Subchapter C - Transportation by Air
         PART I - PERSONS
       

Statute

    Sec. 4262. Definition of taxable transportation
 
    (a) Taxable transportation; in general
      For purposes of this part, except as provided in subsection (b),
    the term ''taxable transportation'' means -
        (1) transportation by air 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 by air 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 part, the term ''taxable transportation''
    does not include that portion of any transportation by air 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 12 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 12 hours.
      For purposes of this paragraph, in the case of personnel of the
      United States Army, Air Force, Navy, Marine Corps, and Coast
      Guard traveling in uniform at their own expense when on official
      leave, furlough, or pass, the scheduled interval described in
      subparagraph (A) shall be deemed to be not more than 12 hours if
      a ticket for the subsequent portion of such transportation is
      purchased within 12 hours after the end of the earlier portion of
      such transportation and the purchaser accepts and utilizes the
      first accommodations actually available to him for such
      subsequent portion.
    (d) Transportation
      For purposes of this part, the term ''transportation'' includes
    layover or waiting time and movement of the aircraft in deadhead
    service.
    (e) Authority to waive 225-mile zone provisions
      (1) In general
        If the Secretary of the Treasury determines that Canada or
      Mexico has entered into a qualified agreement -
          (A) the Secretary shall publish a notice of such
        determination in the Federal Register, and
          (B) effective with respect to transportation beginning after
        the date specified in such notice, to the extent provided in
        the agreement, the term ''225-mile zone'' shall not include
        part or all of the country with respect to which such
        determination is made.
      (2) Termination of waiver
        If a determination was made under paragraph (1) with respect to
      any country and the Secretary of the Treasury subsequently
      determines that the agreement is no longer in effect or that the
      agreement is no longer a qualified agreement -
          (A) the Secretary shall publish a notice of such
        determination in the Federal Register, and
          (B) subparagraph (B) of paragraph (1) shall cease to apply
        with respect to transportation beginning after the date
        specified in such notice.
      (3) Qualified agreement
        For purposes of this subsection, the term ''qualified
      agreement'' means an agreement between the United States and
      Canada or Mexico (as the case may be) -
          (A) setting forth that portion of such country which is not
        to be treated as within the 225-mile zone, and
          (B) providing that the tax imposed by such country on
        transportation described in subparagraph (A) will be at a level
        which the Secretary of the Treasury determines to be
        appropriate.
      (4) Requirement that agreement be submitted to Congress
        No notice may be published under paragraph (1)(A) with respect
      to any qualified agreement before the date 90 days after the date
      on which a copy of such agreement was furnished to the Committee
      on Ways and Means of the House of Representatives and the
      Committee on Finance of the Senate.
 

Sources

    (Added July 25, 1956, ch. 725, Sec. 3, 70 Stat. 644; amended Pub.
    L. 86-70, Sec. 22(b), June 25, 1959, 73 Stat. 146; Pub. L. 86-624,
    Sec. 18(a), July 12, 1960, 74 Stat. 416; Pub. L. 87-508, Sec. 5(b),
    June 28, 1962, 76 Stat. 116; Pub. L. 89-44, title VIII, Sec.
    803(a), June 21, 1965, 79 Stat. 160; Pub. L. 91-258, title II, Sec.
    203(b), May 21, 1970, 84 Stat. 238; Pub. L. 97-248, title II, Sec.
    281A(a)(1), (2), Sept. 3, 1982, 96 Stat. 566, 567.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 4262 was renumbered 4263 of this title and later
    repealed.
                                 AMENDMENTS
      1982 - Subsec. (c)(3). Pub. L. 97-248, Sec. 281A(a)(1),
    substituted ''12 hours'' for ''6 hours'' wherever appearing.
      Subsec. (e). Pub. L. 97-248, Sec. 281A(a)(2), added subsec. (e).
      1970 - Subsec. (a). Pub. L. 91-258, Sec. 203(b)(1)-(3),
    substituted ''part'' for ''subchapter'' in introductory text,
    ''transportation by air'' for ''transportation'' in par. (1), and
    ''in the case of transportation by air'' for ''in the case of
    transportation'' in par. (2), respectively.
      Subsec. (b). Pub. L. 91-258, Sec. 203(b)(1), (4), substituted
    ''part'' for ''subchapter'' and ''transportation by air which'' for
    ''transportation which'', in introductory text, respectively.
      Subsec. (d). Pub. L. 91-258, Sec. 203(b)(5), added subsec. (d).
      1965 - Subsec. (c)(4). Pub. L. 89-44 inserted sentence relating
    to personnel of the Armed Forces traveling in uniform at their own
    expense following subpar. (B).
      1962 - Subsec. (a). Pub. L. 87-508 substituted in introductory
    phrase ''subchapter'' for ''part'' and inserted in par. (2) '', but
    only if such portion is not a part of uninterrupted international
    air transportation (within the meaning of subsection (c)(3))''.
      Subsec. (b). Pub. L. 87-508 substituted in introductory phrase
    ''subchapter'' for ''part''.
      Subsec. (c)(3). Pub. L. 87-508 added par. (3).
      1960 - Subsec. (c)(1). Pub. L. 86-624 inserted ''and Hawaii''
    after ''Alaska''.
      1959 - Subsec. (c)(1). Pub. L. 86-70 substituted ''the District
    of Columbia and the States other than Alaska'' for ''the existing
    48 States and the District of Columbia''.
                      EFFECTIVE DATE OF 1982 AMENDMENT
      Section 281A(a)(3) of Pub. L. 97-248 provided that: ''The
    amendments made by this subsection (amending this section) shall
    apply to transportation beginning after August 31, 1982.''
                      EFFECTIVE DATE OF 1970 AMENDMENT
      Amendment by Pub. L. 91-258 applicable to transportation
    beginning after June 30, 1970, see section 211(b) of Pub. L.
    91-258, set out as a note under section 4041 of this title.
                      EFFECTIVE DATE OF 1965 AMENDMENT
      Section 803(b) of Pub. L. 89-44 provided that: ''The amendment
    made by subsection (a) (amending this section) shall apply with
    respect to amounts paid for transportation beginning on or after
    July 1, 1965.''
                      EFFECTIVE DATE OF 1962 AMENDMENT
      Section 5(b) of Pub. L. 87-508 provided that the amendment made
    by that section is effective with respect to transportation
    beginning after Nov. 15, 1962.
                      EFFECTIVE DATE OF 1960 AMENDMENT
      Amendment by Pub. L. 86-624 effective August 21, 1959, see
    section 18(k) of Pub. L. 86-624, set out as a note under section
    3121 of this title.
                      EFFECTIVE DATE OF 1959 AMENDMENT
      Amendment by Pub. L. 86-70 effective Jan. 3, 1959, see section
    22(i) of Pub. L. 86-70, set out as a note under section 3121 of
    this title.
                               EFFECTIVE DATE
      Section applicable to amounts paid on or after first day of first
    month which begins more than sixty days after July 25, 1956, for
    transportation commencing on or after such first day, see section 6
    of act July 25, 1956, set out as an Effective Date of 1956
    Amendment note under section 4261 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 4261, 4272, 7275 of this
    title.