26 USC 4261 - Imposition of tax

U.S Code last checked for updates: May 11, 2024

§ 4261.

Imposition of tax

(a)

In general

(b)

Domestic segments of taxable transportation

(1)

In general

(2)

Domestic segment

(3)

Changes in segments by reason of rerouting

If—

(A)

transportation is purchased between 2 locations on specified flights, and

(B)

there is a change in the route taken between such 2 locations which changes the number of domestic segments, but there is no change in the amount charged for such transportation,

the tax imposed by paragraph (1) shall be determined without regard to such change in route.

(c)

Use of international travel facilities

(1)

In general

(2)

Exception for transportation entirely taxable under subsection (a)

(3)

Special rule for Alaska and Hawaii

(d)

By whom paid

(e)

Special rules

(1)

Segments to and from rural airports

(A)

Exception from segment tax

(B)

Rural airport

For purposes of this paragraph, the term “rural airport” means, with respect to any calendar year, any airport if—

(i)

there were fewer than 100,000 commercial passengers departing by air (in the case of any airport described in clause (ii)(III), on flight segments of at least 100 miles) during the second preceding calendar year from such airport, and

(ii)

such airport—

(I)

is not located within 75 miles of another airport which is not described in clause (i),

(II)

is receiving essential air service subsidies as of the date of the enactment of this paragraph, or

(III)

is not connected by paved roads to another airport.

(2)

Amounts paid outside the United States

(3)

Amounts paid for right to award free or reduced rate air transportation

(A)

In general

(B)

Controlled group

(C)

Regulations

(4)

Inflation adjustment of dollar rates of tax

(A)

In general

In the case of taxable events in a calendar year after the last nonindexed year, the $3.00 amount contained in subsection (b) and each dollar amount contained in subsection (c) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting the year before the last nonindexed year for “calendar year 2016” in subparagraph (A)(ii) thereof.

If any increase determined under the preceding sentence is not a multiple of 10 cents, such increase shall be rounded to the nearest multiple of 10 cents.

(B)

Last nonindexed year

For purposes of subparagraph (A), the last nonindexed year is—

(i)

2002 in the case of the $3.00 amount contained in subsection (b), and

(ii)

1998 in the case of the dollar amounts contained in subsection (c).

(C)

Taxable event

(D)

Special rule for amounts paid for domestic segments beginning after 2002

(5)

Amounts paid for aircraft management services

(A)

In general

No tax shall be imposed by this section or section 4271 on any amounts paid by an aircraft owner for aircraft management services related to—

(i)

maintenance and support of the aircraft owner’s aircraft, or

(ii)

flights on the aircraft owner’s aircraft.

(B)

Aircraft management services

For purposes of subparagraph (A), the term “aircraft management services” includes—

(i)

assisting an aircraft owner with administrative and support services, such as scheduling, flight planning, and weather forecasting,

(ii)

obtaining insurance,

(iii)

maintenance, storage and fueling of aircraft,

(iv)

hiring, training, and provision of pilots and crew,

(v)

establishing and complying with safety standards, and

(vi)

such other services as are necessary to support flights operated by an aircraft owner.

(C)

Lessee treated as aircraft owner

(i)

In general

(ii)

Disqualified lease

(D)

Pro rata allocation

(f)

Exemption for certain uses

No tax shall be imposed under subsection (a) or (b) on air transportation—

(1)

by helicopter for the purpose of transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas, or

(2)

by helicopter or by fixed-wing aircraft for the purpose of the planting, cultivation, cutting, or transportation of, or caring for, trees (including logging operations),

but only if the helicopter or fixed-wing aircraft does not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code, during such use. In the case of helicopter transportation described in paragraph (1), this subsection shall be applied by treating each flight segment as a distinct flight.

(g)

Exemption for air ambulances providing certain emergency medical transportation

No tax shall be imposed under this section or section 4271 on any air transportation for the purpose of providing emergency medical services—

(1)

by helicopter, or

(2)

by a fixed-wing aircraft equipped for and exclusively dedicated on that flight to acute care emergency medical services.

(h)

Exemption for skydiving uses

(i)

Exemption for seaplanes

(j)

Exemption for aircraft in fractional ownership aircraft programs

(k)

Application of taxes

(1)

In general

The taxes imposed by this section shall apply to—

(A)

transportation beginning during the period—

(i)

beginning on the 7th day after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and

(ii)

ending on May 10, 2024, and

(B)

amounts paid during such period for transportation beginning after such period.

(2)

Refunds

(Aug. 16, 1954, ch. 736, 68A Stat. 506; July 25, 1956, ch. 725, §§ 1, 4(b), 70 Stat. 644, 646; Pub. L. 86–75, § 4, June 30, 1959, 73 Stat. 158; Pub. L. 86–564, title II, § 202(a)(3), June 30, 1960, 74 Stat. 290; Pub. L. 87–72, § 3(a)(3), June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 5(a), (b), June 28, 1962, 76 Stat. 115; Pub. L. 88–52, § 3(a)(3), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(a)(3), June 30, 1964, 78 Stat. 237; Pub. L. 89–44, title III, § 303(a), June 21, 1965, 79 Stat. 148; Pub. L. 91–258, title II, § 203(a), May 21, 1970, 84 Stat. 238; Pub. L. 94–455, title XIX, § 1904(a)(7), Oct. 4, 1976, 90 Stat. 1812; Pub. L. 96–298, § 1(b), July 1, 1980, 94 Stat. 829; Pub. L. 97–248, title II, § 280(a), Sept. 3, 1982, 96 Stat. 564; Pub. L. 98–369, div. A, title X, § 1018(b), July 18, 1984, 98 Stat. 1021; Pub. L. 99–514, title XVIII, § 1878(c)(2), Oct. 22, 1986, 100 Stat. 2903; Pub. L. 100–223, title IV, §§ 402(a)(1), 404(a), (c), Dec. 30, 1987, 101 Stat. 1532, 1533; Pub. L. 101–239, title VII, § 7503(a), Dec. 19, 1989, 103 Stat. 2362; Pub. L. 101–508, title XI, § 11213(a)(1), (d)(1), Nov. 5, 1990, 104 Stat. 1388–432, 1388–435; Pub. L. 103–272, § 5(g)(2), July 5, 1994, 108 Stat. 1374; Pub. L. 104–188, title I, § 1609(b), (d), (e), Aug. 20, 1996, 110 Stat. 1841, 1842; Pub. L. 105–2, § 2(b)(1), Feb. 28, 1997, 111 Stat. 5; Pub. L. 105–34, title X, § 1031(b)(1), (c)(1), (2), title XIV, § 1435(a), title XVI, § 1601(f)(4)(D), Aug. 5, 1997, 111 Stat. 929, 930, 1052, 1091; Pub. L. 108–176, title IX, § 902(a), Dec. 12, 2003, 117 Stat. 2598; Pub. L. 109–59, title XI, §§ 11121(c), 11122(a), 11123(a), Aug. 10, 2005, 119 Stat. 1951, 1952; Pub. L. 109–135, title IV, § 412(vv), Dec. 21, 2005, 119 Stat. 2640; Pub. L. 110–161, div. K, title I, § 116(b)(1), Dec. 26, 2007, 121 Stat. 2381; Pub. L. 110–190, § 2(b)(1), Feb. 28, 2008, 122 Stat. 643; Pub. L. 110–253, § 2(b)(1), June 30, 2008, 122 Stat. 2417; Pub. L. 110–330, § 2(b)(1), Sept. 30, 2008, 122 Stat. 3717; Pub. L. 111–12, § 2(b)(1), Mar. 30, 2009, 123 Stat. 1457; Pub. L. 111–69, § 2(b)(1), Oct. 1, 2009, 123 Stat. 2054; Pub. L. 111–116, § 2(b)(1), Dec. 16, 2009, 123 Stat. 3031; Pub. L. 111–153, § 2(b)(1), Mar. 31, 2010, 124 Stat. 1084; Pub. L. 111–161, § 2(b)(1), Apr. 30, 2010, 124 Stat. 1126; Pub. L. 111–197, § 2(b)(1), July 2, 2010, 124 Stat. 1353; Pub. L. 111–216, title I, § 101(b)(1), Aug. 1, 2010, 124 Stat. 2349; Pub. L. 111–249, § 2(b)(1), Sept. 30, 2010, 124 Stat. 2627;

cite as: 26 USC 4261