An Act to exempt certain additional foreign travel from the tax on the transportation of persons
PL 84-796 (H.R.5265), enacted 07/25/1956

644 
PUBLIC LAW 79&-JULY 25, 1956 
[70 ST A T * 
Public Law 796 
CHAPTER 725 
Juiy 25, 19S6 
^ 
^ ^ T 
[H. R. 5265] 
To exempt certain aclclitional foreign travel from tlie tax on the transportation 
of persons. 
Taxes. 
Foreign t r a n s -
portation e X e m p-
tion. 
68A Stat. 506. 
26 u s e 4261. 
68A Stat. 506. 
26 u s e 4262. 
Ante, p. 395. 
68 A Stat. 506. 
26 u s e 4261. 
Be it enacted hy the Senate and House of RepresentativeH of the 
United States of Arnerica in Congress assembled, That subsections 
(a) and (b) of section 4261 of the Internal Kevenue Code of 1954 
(relating to the tax on transportation of persons) are amended to read 
as follows: 
" (a) AMOUNTS PAID WITHIN THE UNITED STATES.—There is hereby 
imposed upon the amount paid within the United States for taxable 
transportation (as defined in section 4262) of any person by rail, motor 
vehicle, Avater, or air a tax equal to 10 percent of the amount so paid. 
"(b) AMOUNTS PAID OUTSIDE THE UNITED STATES.—There is hereby 
imposed upon the amount paid without the United States for taxable 
transportation (as defined in section 4262) of any person by rail, motor 
vehicle, water, or air, but only if such transportation begins and ends 
in the United States, a tax equal to 10 percent of the amount so paid." 
SEC. 2. Section 4262 of the Internal Revenue Code of 1954 (relating 
to exemptions from tax on transportation of persons) is amended by 
striking out subsection (a) and by redesignating subsections (b), (c), 
(d), (e), and (f) as subsections (a), (b), (c), (d), and (e), respec-
tively. 
Such section, as so amended, is renumbered as section 4263. 
Section 6421 (d) (2) of such Code (relating to definition of "tax-
exempt passenger fare revenue") is amended by striking out "4262 
(b)" and inserting in lieu thereof "4263 (a)". 
SEC. 3. Part I of subchapter C of chapter 33 of the Internal Revenue 
Code of 1954 is amended by inserting after section 4261 the following 
new section: 
"SEC. 4262. DEFINITION OF TAXABLE TRANSPORTATION. 
"(a) TAXABLE TRANSPORTATION ; I N GENERAL.—For purposes of this 
part, except as provided in subsection (b), the term 'taxable transpor-
tation' means— 
"(1) transportation 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 other than transportation 
described in paragraj)h (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. 
"(b) EXCLUSION OF CERTAIN TRAVEL.—For purposes of this part, the 
term 'taxable transportation' does not include that portion of any 
transportation 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 transporta-
tion 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 ITnited 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 
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PUBLIC LAW 796-JULY 25, 1956 
645 
"(4) a direct line from the point (or the port or station) speci-
fied 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 TTNITED STATES.—The term 'continental 
United States' means the existing 48 States and the District of 
Columbia. 
"(2) 225-MILE ZONE.—The term '225-mile ^one' means that por-
tion of Canada and Mexico which is not more than 225 miles from 
the nearest point in the continental United States." 
SEC. 4. (a) Part I of subchapter C of chapter 33 of the Internal 
Revenue Code of 1954 is amended by adding at the end thereof the 
following new section: 
"SEC. 4264. 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 pur-
suant 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 pur-
chased in connection with such ticket or order, and shall report to the 
Secretary or his delegate 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 or his delegate, to the extent 
that such tax is not collected under any other provision of this sub-
chapter— 
"(1) such tax shall be paid by the person paying for the trans-
portation or by the person using the transportation; 
"(2) such tax shall be paid within such time as the Secretary or 
his delegate 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 person to whom 
the payment for transportation was made or to the Secretary or 
his delegate. 
"(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 unless the taxpayer establishes, pursuant to regulations 
prescribed by the Secretary or his delegate, 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 part 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 part to transportation any 
part of which is outside the northern portion of the Western Hemi-
sphere— 
646 
PUBLIC LAW 797-JULY 25, 1956 
[70 ST 
A T . 
68A Stat. 506. 
26 u s e 4261. 
68A Stat. 511. 
26 u s e 429 I. 
68A Stat. 506. 
Effective date. 
"(1) 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. 
"(2) If such transportation is transportation by water on a 
vessel which makes one or more intermediate stops at ports within 
the United States on a voyage which begins or ends in the United 
States and ends or begins outside the northern portion of the 
Western Hemisphere, a stop at an intermediate port within the 
United States at which such vessel is not authorized both to dis-
charge and to take on passengers shall not be considered to be a 
stop at a port within the United States. 
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 Date Line, and north 
of the equator, but not including any country of South America." 
(b) Section 4261 (d) of the Internal Revenue Code of 1954 (relating 
to payment of tax imposed on transportation of persons) is amended 
by striking out "The and inserting in lieu thereof "Except as pro-
vided in section 4264, the". 
(c) The first sentence of section 4291 of the Internal Revenue Code 
of 1954 (relating to cases where persons receiving payment must col-
lect tax) is amended to read as follows: "Except as provided in section 
4264 (a), every person receiving any payment for facilities or services 
on which a tax is imposed upon the payor thereof under this chapter 
shall collect the amount of the tax from the person making such pay-
ment." 
SEO. 5. The table of sections for part I of subchapter C of chapter 
33 of the Internal Revenue Code of 1954 is amended by striking out 
"Sec. 4262. Exemptions." 
and inserting in lieu thereof 
"Sec. 4262. Definition of taxable transportation. 
"Sec. 4263. Exemptions. 
"Sec. 4264. Special rules." 
SEC. 6. The amendments made by this Act shall apply to amounts 
paid on or after the first day of the first month which begins more 
than sixty days after the date of the enactment of this Act for trans-
portation commencing on or after such first day. 
Approved July 25, 1956. 
July 25, 1956 
[H. R. 2603] 
Public Law 797 
CHAPTER 726 
AN ACT 
To authorize the Commissioners of the District of Columbia to prescribe the 
area within which officers and members of the Metropolitan Police force and 
the Fire Department of the District of Columbia may reside. 
D. e . Police and 
Firemen. 
R e s i d e n c e re-
quirements. 
Be it ejMcted hy the Senate and House of Representatives 
of the 
United States of America in Congress a^sernoled^ That (a) there shall 
be no limitation or restriction of place of residence of any officer or 
member of the Metropolitan Police force, or of the Fire Department 
of the District of Columbia other than residence within the Wash-
ington, District of Columbia, metropolitan district. For the purposes 
of this Act, "Washington, District of Columbia, metropolitan district" 
shall, except as otherwise provided in subsection (b) of this section, 
be held to include the District of Columbia and the territory adjacent 
thereto within a radius of twelve miles from the United States Capitol