
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4262]

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

(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.)


                            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.

                  Section Referred to in Other Sections

    This section is referred to in sections 4261, 4272, 7275 of this 
title.
