[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: 26CFR49.4261-2]

[Page 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. 49.4261-2  Application of tax.

    (a) Tax on total amount paid. The tax is measured by the total 
amount paid, whether paid at one time or collected at intervals during 
the course of a continuous transportation, as in the case of a carrier 
operating under the zone system. For the application of the tax with 
respect to amount paid for seating or sleeping accommodations in 
connection with taxable transportation, see Sec. 49.4261-9.
    (b) Tax on transportation of each person. The tax is determined by 
the amount paid for transportation with respect to each person. Thus, 
where a single payment is made for the transportation of two or more 
persons, the taxability of the payment and the amount of the tax, if 
any, payable with respect thereto, must be determined on the basis of 
the portion of the total payment properly allocable to each person 
transported.
    (c) Charges for nontransportation services. Where a payment covers 
charges for nontransportation services as well as for transportation of 
a person, such as charges for meals, hotel accommodations, etc., the 
charges for the nontransportation services may be excluded in computing 
the tax payable with respect to such payment, provided such charges are 
separable and are shown in the exact amounts thereof in the records 
pertaining to the transportation charge. If the charges for 
nontransportation services are not separable from the charge for 
transportatinon of the person, the tax must be computed upon the full 
amount of the payment.

[T.D. 6430, 24 FR 9665, Dec. 3, 1959, as amended by T.D. 6518, 25 FR 
13134, Dec. 21, 1960, as amended by T.D. 6618, 27 FR 11222, Nov. 14, 
1962]