[Code of Federal Regulations]
[Title 26, Volume 16]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR43.4472-1]

[Page 32]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 43_EXCISE TAX ON TRANSPORTATION BY WATER--Table of Contents
 
Sec. 43.4472-1  Definitions.

    (a) In general. For definitions of the terms ``covered voyage'' and 
``passenger vessel,'' see sections 4472 (1) and (2).
    (b) Voyage. For purposes of this section, ``voyage'' means a journey 
of a vessel that includes the outward and homeward trips or passages. 
The voyage commences when the vessel begins to load passengers and 
continues during the entire ensuing period until the vessel has made one 
outward and one homeward passage (including intermediate passages, if 
made). A voyage may be a covered voyage with respect to a passenger even 
if the passenger does not make both an outward and homeward passage or 
if the point of first embarkation or disembarkation by the passenger in 
the United States is an intermediate stop of the vessel.
    (c) Over 1 or more nights. A voyage is considered to extend over 1 
or more nights if it extends for more than 24 hours.
    (d) Engaged in gambling. A passenger is engaged in gambling aboard a 
vessel if that person is participating as a player in any policy game or 
other lottery, or any other game of chance, for money or other thing of 
value, provided that the policy game, other lottery, or game of chance 
is conducted, sponsored, or operated by the owner or operator of the 
vessel, as either principal or agent, or by an employee, agent, or 
franchisee of the owner or operator of the vessel. A passenger is not 
engaged in gambling aboard a vessel if the passenger participates with 
other passengers in a casual, ``friendly'' game of chance that is not 
conducted, sponsored, or operated by the owner or operator of the vessel 
or by an employee, agent, or franchisee of the owner or operator.
    (e) Territorial waters. For purposes of sections 4471 and 4472, the 
territorial waters of the United States are those waters within the 
international boundary line between the United States and any contiguous 
foreign country or within 3 nautical miles (3.45 statute miles) from low 
tide on the coastline. No inference is intended as to the extent of the 
territorial limits for other tax purposes.
    (f) Passenger. For purposes of sections 4471 and 4472, ``passenger'' 
means an individual carried on the vessel except--
    (1) The Master; or
    (2) A crew member or other individual engaged in the business of the 
vessel or its owners. A person is engaged in the business of the vessel 
or its owners if the person is an employee of the vessel or her owners 
or has a duty, contractual or otherwise, to perform on the vessel on 
behalf of the vessel or its owners. For example, a person engaged as an 
entertainer, instructor, or lecturer for the benefit of the passengers 
is not a passenger, but a person on a promotional trip such as a travel 
agent or contest winner is a passenger even though the vessel or its 
owners may derive some future benefit from the promotion.

[T.D. 8422, 57 FR 33636, July 30, 1992; 57 FR 45713, Oct. 5, 1992]