26 U.S.C. § 4262 (INTERNAL REVENUE CODE)
§ 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, § 3, 70 Stat. 644; amended Pub. L. 86–70, § 22(b), June 25, 1959, 73 Stat. 146; Pub. L. 86–624, § 18(a), July 12, 1960, 74 Stat. 416; Pub. L. 87–508, § 5(b), June 28, 1962, 76 Stat. 116; Pub. L. 89–44, title VIII, § 803(a), June 21, 1965, 79 Stat. 160; Pub. L. 91–258, title II, § 203(b), May 21, 1970, 84 Stat. 238; Pub. L. 97–248, title II, § 281A(a)(1), (2), Sept. 3, 1982, 96 Stat. 566, 567.)
heading: Editorial Notes
heading: Prior Provisions
text: A prior section 4262 was renumbered 4263 of this title and later repealed.
heading: Amendments
text: 1982—Subsec. (c)(3). Pub. L. 97–248, § 281A(a)(1), substituted “12 hours” for “6 hours” wherever appearing.
Subsec. (e). Pub. L. 97–248, § 281A(a)(2), added subsec. (e).
1970—Subsec. (a). Pub. L. 91–258, § 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, § 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, § 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”.
heading: Statutory Notes and Related Subsidiaries
heading: Effective Date of 1982 Amendment
text: 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.”
heading: Effective Date of 1970 Amendment
text: 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.
heading: Effective Date of 1965 Amendment
text: Pub. L. 89–44, title VIII, § 803(b), June 21, 1965, 79 Stat. 160, 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.”
heading: Effective Date of 1962 Amendment
text: 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.
heading: Effective Date of 1960 Amendment
text: 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.
heading: Effective Date of 1959 Amendment
text: 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.
heading: Effective Date
text: 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.
heading: Transfer of Functions
text: For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating 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 Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.