§4263 — Title 26 Internal Revenue Code | U.S. Code

Summary

Air carriers and ticket sellers must collect the air travel tax in certain cases. If a ticket or order was paid for outside the United States, the carrier that provides the first part of the trip must collect the tax. If a seller refunds a ticket that was bought without tax, the seller must keep any tax due for the part of the trip already used and tell the IRS about any tax they still cannot collect. If the tax was not paid when the ticket was bought, the carrier that runs the first U.S. segment must pay it under Treasury rules. Payments made inside the United States are taxable unless the buyer proves at payment time that the trip is not taxed. A round trip counts as the trip to the destination and the return as separate trips. If a trip goes outside the northern portion of the Western Hemisphere and the route leaves and then reenters that area, the trip is treated as travel to a point outside that area and then as a separate trip back. The "northern portion of the Western Hemisphere" means the area 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.

Title 26, §4263

Internal Revenue Code — Source: USLM XML via OLRC

(a)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)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 the amount of any such tax remaining uncollected.

(c)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 collected under any other provision of this subchapter, such tax shall be paid by the carrier providing the initial segment of such transportation which begins or ends in the United States.

(d)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 payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261.

(e)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)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 Hemisphere” 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.

Notes & Related Subsidiaries

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) relating to commutation travel, etc., certain organizations; 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 “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.” 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 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. 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 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.

Statutory Notes and Related Subsidiaries

Effective Date

of 1997 AmendmentAmendment 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.

Effective Date

of 1962 Amendment Pub. L. 87–508, § 5(b), June 28, 1962, 76 Stat. 115, provided that the amendment made by that section is effective 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.

§4263 Special rules

Summary

Title 26, §4263

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Regulations

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Effective Date

Effective Date

Citations & Metadata