644
PUBLIC LAW 79&-JULY 25, 1956 Public Law 796
Juiy 25, 19S6 [H. R. 5265]
Taxes. Foreign transportation e X e m ption. 68A Stat. 506. 26 USC 4261.
68A Stat. 506. 26 USC 4262.
Ante, p. 395.
68 A Stat. 506. 26 USC 4261.
[70
ST A T *
CHAPTER 725
^ ^^T To exempt certain aclclitional foreign travel from the tax on the transportation of persons.
Be it enacted by the Senate and House of RepresentativeH of the United States of America in Congress assembled, That subsections (a) and (b) of section 4261 of the Internal Revenue Code of 1954 (relating to the tax on transportation of persons) are amended to read as follows: " (a) AMOUNTS PAID W I T H I N 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), respectively. Such section, as so amended, is renumbered as section 4263. Section 6421(d)(2) of such Code (relating to definition of "taxexempt 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; IN GENERAL.—For purposes of this part, except as provided in subsection (b), the term 'taxable transportation' 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 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. " (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 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
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