[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: 26CFR49.4261-1]

[Page 250-251]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 49_FACILITIES AND SERVICES EXCISE TAXES--Table of Contents
 
                   Subpart D_Transportation of Persons
 
Sec. 49.4261-1  Imposition of tax; in general.

    Source: T.D. 6430, 24 FR 9665, Dec. 3, 1959, unless otherwise noted.
    Note: For exemption from tax on transportation of persons by air of 
amounts paid by the Department of the Interior for fire prevention and 
control activities, see 32 FR 5457, April 1, 1967.


    (a) Transportation beginning before November 16, 1962. Section 4261 
imposes a tax equal to 10 percent of the amount paid for taxable 
transportation of persons by rail, motor vehicle, water, or air which 
begins before November 16, 1962. For the definition of the term 
``taxable transportation'', see section 4262 and Sec. Sec. 49.4262(a)-1 
and 49.4262 (b)-1. The tax accrues at the time payment is made for the 
transportation, irrespective of when the transportation is furnished if 
the transportation actually begins before November 16, 1962.
    (b) Transportation beginning after November 15, 1962. Section 4261 
imposes a tax equal to 5 percent of the amount paid for the air portion 
of taxable transportation of persons which begins after November 15, 
1962, and before July 1, 1965. For definition of the term ``taxable 
transportation'', see section 4262 and Sec. Sec. 49.4262(a)-1 and 
49.4262 (b)-1.

[[Page 251]]

The tax accrues at the time payment is made for the transportation, 
irrespective of when the transportation is furnished if the 
transportation actually begins after November 15, 1962, and before July 
1, 1965.
    (c) In general. The purpose of the transportation, whether business 
or pleasure, is immaterial. It is not necessary that the transportation 
be between two definite points. If not otherwise exempt, a payment for 
continuous transportation beginning and ending at the same point is 
subject to the tax. For the rate of tax with respect to amounts paid for 
seating and sleeping accommodations in connection with taxable 
transportation, see Sec. 49.4261-9.

[T.D. 6618, 27 FR 11222, Nov. 14, 1962, as amended by T.D. 6753, 29 FR 
12718, Sept. 9, 1964]