[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: 26CFR49.4261-8]

[Page 257]
 
                       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. 49.4261-8  Examples of payments not subject to tax.

    In addition to a payment specifically exempt under section 4263, 
4292, 4293, or 4294 the following are examples of payments not subject 
to tax:
    (a) Exchange of prepaid order, scrip, etc., for tickets. A ticket 
issued pursuant to an exchange order, prepaid order, airline pilot 
order, or scrip, is not subject to tax where the tax is paid at the time 
of payment for the order or scrip.
    (b) Caretakers and messengers accompanying freight shipments. The 
tax on the transportation of persons does not apply to amounts paid for 
transportation of freight that includes also the transportation of 
caretakers or messengers for which no specific charge as such is made.
    (c) Special baggage transportation equipment. An amount paid for 
special baggage transportation equipment is not subject to the tax on 
the transportation of persons if separable from the payment for 
transportation of persons and if shown in the exact amount of the charge 
on the records covering the taxable transportation payment.
    (d) Circus or show conveyances. The amount paid pursuant to a 
contract for the movement of a circus or show conveyance where the 
amount covers only the transportation of the performers, laborers, 
animals, equipment, etc., by such conveyances is not subject to the tax 
on the transportation of persons imposed by section 4261. However, if 
the contract payment also covers the issuance to advance agents, bill 
posters, etc., of circus or show scrip books, or other evidence of the 
right to transportation, for use on regular passenger conveyances, that 
portion of the contract payment properly allocable to such scrip books 
or other evidence is subject to the tax on the transportation of 
persons.
    (e) Corpses. The tax on the transportation of persons does not apply 
to the amount paid for the transportation of a corpse, but does apply to 
the amount paid for the transportation of any person accompanying the 
corpse.
    (f) Miscellaneous charges. Where the charge is separable from the 
payment for the transportation of a person and is shown in the exact 
amount thereof on the records pertaining to the transportation payment, 
the tax on the transportation of persons does not apply to the following 
and similar charges:
    (1) Charges for transportation of baggage, including incidental 
charges such as excess value, storage, transfer, parcel checking, 
special delivery, etc.
    (2) Charges for transportation of an automobile in connection with 
the transportation of a person.
    (3) Charges for bridge or road toll, or a ferry charge of 60 cents 
or less, made in connection with the transportation beginning before 
November 16, 1962, of a person by bus. Charges incurred by the carrier 
which are part of its costs of operation, such as bridge tolls, road 
tolls, or ferry charges, paid by the carrier on account of the bus and 
driver, cannot be deducted from the charge made to the passenger in 
determining the taxable charges for transportation.
    (4) Charges for admissions, guides, meals, hotel accommodations, and 
other nontransportation services, for example, where such items are 
included in a lump sum payment for an all-expense tour.
    (5) Charges in connection with the charter of a land, water, or air 
conveyance for the transportation of persons beginning before November 
16, 1962, or an air conveyance for transportation of persons which 
begins after November 15, 1962, such as for parking, icing, sanitation, 
``layover'' or ``waiting time'', movement of equipment in deadhead 
service, dockage, or wharfage, etc.

[T.D. 6430, 24 FR 9665, Dec. 3, 1959, as amended by T.D. 6618, 27 FR 
11223, Nov. 14, 1962]