§4262 Definition of Taxable Transportation

Summary

Says which air travel is counted as taxable. Air travel that starts in the United States or in the 225‑mile zone and ends in the United States or in the 225‑mile zone is taxable. For other international trips, only the part that goes from one U.S. point to another is taxable, unless that U.S. part is part of “uninterrupted international air transportation.” A portion of a flight that happens entirely outside the United States is not taxable if it begins where the route leaves the U.S. (or at a 225‑mile zone point), ends where the route re‑enters the U.S. (or at a 225‑mile zone point), and the straight line between those two points goes more than 225 miles from the United States. Defines a few key terms in one line each: continental United States — the District of Columbia and the states except Alaska and Hawaii; 225‑mile zone — parts of Canada and Mexico within 225 miles of the nearest point in the continental U.S.; uninterrupted international air transportation — travel where scheduled gaps between the U.S. portion and the rest are 12 hours or less (and gaps between segments of the U.S. portion are also 12 hours or less). For uniformed U.S. military traveling in uniform on leave, a later ticket bought within 12 hours and using the first available seat counts as meeting the 12‑hour rule. “Transportation” also includes layovers, waiting, and deadhead movement. The Secretary of the Treasury can remove parts of Canada or Mexico from the 225‑mile zone by agreement (the agreement must name the area and assure appropriate taxes), but must publish a notice in the Federal Register and may not do so until 90 days after sending a copy to the House Ways and Means Committee and the Senate Finance Committee.