[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: 26CFR49.4263-5]

[Page 264]
 
                       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. 49.4263-5  Small aircraft on nonestablished lines.

    (a) In general. Amounts paid for the transportation of persons on a 
small aircraft of the type sometimes referred to as ``air taxis'' shall 
be exempt from the tax imposed under section 4261 provided the aircraft 
(1) has a gross take-off weight of less than 12,500 pounds determined as 
provided in paragraph (b) of this section and (2) has a passenger 
seating capacity of less than 10 adult passengers, including the pilot. 
The exemption does not apply, however, if the aircraft is operated on an 
established line.
    (b) Determination of gross take-off weight. The term ``gross take-
off weight of less than 12,500 pounds'' means a maximum certificated 
take-off weight of less than 12,500 pounds. This shall be based on the 
maximum certificated take-off weight shown in the aircraft operating 
record or aircraft flight manual which is part of the air worthiness 
certificate issued by the Federal Aviation Administration.
    (c) Established line. The term ``operated on an established line'' 
means operated with some degree of regularity between definite points. 
It does not necessarily mean that strict regularity of schedule is 
maintained; that the full run is always made; that a particular route is 
followed; or that intermediate stops are restricted. The term implies 
that the person rendering the service maintains and exercises control 
over the direction, route, time, number of passengers carried, etc.

[T.D. 6430, 24 FR 9665, Dec. 3, 1959. Redesignated by T.D. 6618, 27 FR 
11226, Nov. 14, 1962]