[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: 26CFR49.4263-6]

[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. 49.4263-6  Exemptions applicable with respect to transportation 
beginning before November 16, 1962.

    Section 5(b) of the Tax Rate Extension Act of 1962 repealed the 
exemptions contained in former section 4263(b) for motor vehicles with 
seating capacity of less than ten and in former section 4263(c) for 
fishing trips by boat effective with respect to transportation beginning 
after November 15, 1962. With respect to transportation which began 
before November 16, 1962, the tax imposed by section 4261 does not apply 
with respect to any amount paid for transportation.
    (a) By a motor vehicle having a seating capacity of less than ten 
adult passengers, including the driver, unless such vehicle is operated 
on an established line, or
    (b) By boat where the transportation is for the purpose of fishing 
from such boat.

In the case of the exemption with respect to a motor vehicle having a 
seating capacity of less than ten adult passengers, the terms ``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. 6618, 27 FR 11226, Nov. 14, 1962]