26 U.S.C. § 4263 — Special rules

Page 2960 TITLE 26—INTERNAL REVENUE CODE § 4263 1960—Subsec. (c)(1). Pub. L. 86–624 inserted ‘‘and Ha- waii’’ 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 Colum- bia’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–248, title II, § 281A(a)(3), Sept. 3, 1982, 96 Stat. 567, 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 transpor- tation 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 Pub. L. 89–44, title VIII, § 803(b), June 21, 1965, 79 Stat. 160, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply with re- spect to amounts paid for transportation beginning on or after July 1, 1965.’’ EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87–508, § 5(b), June 28, 1962, 76 Stat. 115, pro- vided that the amendment made by that section is ef- fective 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. TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. § 4263. 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 transpor- tation pursuant to such order shall collect the amount of the tax. (b) Tax deducted upon refunds Every person who refunds any amount with re- spect 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 Sec- retary 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, to the extent that such tax is not col- lected under any other provision of this sub- chapter, such tax shall be paid by the carrier providing the initial segment of such transpor- tation which begins or ends in the United States. (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, at the time of pay- ment for the transportation, that the transpor- tation 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 por- tion 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 con- sist 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 Hemi- sphere’’ means the area lying west of the 30th meridian west of Greenwich, east of the inter- national dateline, and north of the Equator, but not including any country of South America. (Added July 25, 1956, ch. 725, § 4(a), 70 Stat. 645, § 4264; amended Pub. L. 87–508, § 5(b), June 28, 1962, 76 Stat. 117; renumbered § 4263, Pub. L. 91–258, title II, § 205(c)(2), May 21, 1970, 84 Stat. 242; amended Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105–34, title X, § 1031(c)(3), Aug. 5, 1997, 111 Stat. 932.) Editorial Notes PRIOR PROVISIONS A prior section 4263, acts Aug. 16, 1954, ch. 736, 68A Stat. 506, § 4263, formerly § 4262; renumbered § 4263 and amended July 25, 1956, ch. 725, § 2, 70 Stat. 644; Aug. 7, 1956, ch. 1024, § 1, 70 Stat. 1077; June 29, 1957, Pub. L. 85–74, 71 Stat. 243; Sept. 2, 1958, Pub. L. 85–859, title I, § 134, 72 Stat. 1292; June 28, 1962, Pub. L. 87–508, § 5(b), 76 Stat. 117, provided for exemptions, subsecs. (a) to (d) re- lating to commutation travel, etc., certain organiza- Page 2961 TITLE 26—INTERNAL REVENUE CODE § 4271 tions; members of the Armed Forces, and small aircraft on nonestablished lines, respectively, prior to repeal by Pub. L. 91–258, title II, § 205(c)(1), May 21, 1970, 84 Stat. 242, effective on July 1, 1970, as provided in section 211(a) of Pub. L. 91–258, set out as a note under section 4041 of this title. AMENDMENTS 1997—Subsec. (c). Pub. L. 105–34 substituted ‘‘sub- chapter, 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 trans- portation; ‘‘(2) such tax shall be paid within such time as the Secretary shall prescribe by regulations after which- ever 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 Sec- retary, to the person to whom the payment for trans- portation 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.’’ 1976—Subsecs. (b) to (d). Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. 1962—Subsec. (c)(3). Pub. L. 87–508 provided for pay- ment 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. Subsec. (d). Pub. L. 87–508 inserted ‘‘by air’’ after ‘‘transportation of any person’’. Subsec. (e). Pub. L. 87–508 substituted ‘‘subchapter’’ for ‘‘part’’. 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 con- sideration 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. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–34 applicable to transpor- tation 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. EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87–508, § 5(b), June 28, 1962, 76 Stat. 115, pro- vided that the amendment made by that section is ef- fective with respect to transportation beginning after Nov. 15, 1962. 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. PART II—PROPERTY Sec. 4271. Imposition of tax. 4272. Definition of taxable transportation, etc. Editorial Notes AMENDMENTS 1970—Pub. L. 91–258, title II, § 204, May 21, 1970, 84 Stat. 239, added ‘‘PART II—PROPERTY’’ and items 4271 and 4272. § 4271. Imposition of tax (a) In general There is hereby imposed upon the amount paid within or without the United States for the tax- able transportation (as defined in section 4272) of property a tax equal to 6.25 percent of the amount so paid for such transportation. The tax imposed by this subsection shall apply only to amounts paid to a person engaged in the busi- ness of transporting property by air for hire. (b) By whom paid (1) In general Except as provided by paragraph (2), the tax imposed by subsection (a) shall be paid by the person making the payment subject to tax. (2) Payments made outside the United States If a payment subject to tax under subsection (a) is made outside the United States and the person making such payment does not pay such tax, such tax— (A) shall be paid by the person to whom the property is delivered in the United States by the person furnishing the last seg- ment of the taxable transportation in re- spect of which such tax is imposed, and (B) shall be collected by the person fur- nishing the last segment of such taxable transportation. (c) Determination of amounts paid in certain cases For purposes of this section, in any case in which a person engaged in the business of trans- porting property by air for hire and one or more other persons not so engaged jointly provide services which include taxable transportation of property, and the person so engaged receives, for the furnishing of such taxable transportation, a portion of the receipts from the joint providing of such services, the amount paid for the taxable transportation shall be treated as being the sum of (1) the portion of the receipts so received, and (2) any expenses incurred by any of the persons not so engaged which are properly attributable to such taxable transportation and which are taken into account in determining the portion of the receipts so received. (d) Application of tax (1) In general The tax imposed by subsection (a) shall apply to— (A) transportation beginning during the period— (i) beginning on the 7th day after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and (ii) ending on September 30, 2028, and (B) amounts paid during such period for transportation beginning after such period. (2) Refunds If, as of the date any transportation begins, the taxes imposed by this section would not have applied to such transportation if paid for on such date, any tax paid under paragraph (1)(B) with respect to such transportation shall be treated as an overpayment.