Internal Revenue Code:Sec. 4263. Special rules

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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. 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 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 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
    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) 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 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 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.
 

Sources

    (Added July 25, 1956, ch. 725, Sec. 4(a), 70 Stat. 645, Sec. 4264;
    amended Pub. L. 87-508, Sec. 5(b), June 28, 1962, 76 Stat. 117;
    renumbered Sec. 4263, Pub. L. 91-258, title II, Sec. 205(c)(2), May
    21, 1970, 84 Stat. 242; amended Pub. L. 94-455, title XIX, Sec.
    1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 105-34, title
    X, Sec. 1031(c)(3), Aug. 5, 1997, 111 Stat. 932.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 4263, acts Aug. 16, 1954, ch. 736, 68A Stat. 506,
    Sec. 4263, formerly Sec. 4262; renumbered Sec. 4263 and amended
    July 25, 1956, ch. 725, Sec. 2, 70 Stat. 644; Aug. 7, 1956, ch.
    1024, Sec. 1, 70 Stat. 1077; June 29, 1957, Pub. L. 85-74, 71 Stat.
    243; Sept. 2, 1958, Pub. L. 85-859, title I, Sec. 134, 72 Stat.
    1292; June 28, 1962, Pub. L. 87-508, Sec. 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, Sec.
    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.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      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.
                      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
      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, 4291 of this title.