506
INTERNAL REVENUE CODE OF 1954
Subchapter C—Transportation Part I. Persons. Part II. Property. Part III. Oil by pipeline. PART I—PERSONS Sec. 4261. Imposition of tax. Sec. 4262. Exemptions. SEC. 4261. IMPOSITION OF TAX. (a) AMOUNTS PAID W I T H I N THE UNITED STATES.—There is hereby imposed upon the amount paid within the United States for the transportation of persons by rail, motor vehicle, water, or air within or without the United States a tax equal to 10 percent of the amount so paid. (b) AMOUNTS P A I D WITHOUT THE UNITED STATES.—There is hereby imposed upon the amount paid without the United States for the transportation of persons by rail, motor vehicle, water, or air which begins and ends in the United States a tax equal to 10 percent of the amount so paid. (c) SEATS, BERTHS, ETC.—There is hereby imposed upon the amount paid for seating or sleeping accommodations in connection with transportation with respect to which a tax is imposed by subsection (a) or (b) a tax equivalent to 10 percent of the amount so paid. (d) BY WHOM PAID.—The taxes imposed by this section shall be paid by the person making the payment subject to the tax. SEC. 4262. EXEMPTIONS. (a) CERTAIN FOREIGN T R A V E L. — The tax imposed by section 4261
shall not apply with respect to transportation any part of which is outside the northern portion of the Western Hemisphere, except with respect to any part of such transportation which is from any port or station within the United States, Canada, or Mexico to any other port or station within the United States, Canada, or Mexico. I n the case of transportation by water on a vessel which makes one or more intermediate stops a t ports within the United States, Canada, or Mexico on a voyage which begins or ends in the United States and ends or begins outside the northern portion of the Western Hemisphere, no part of such transportation shall be considered for the purposes of the preceding sentence to be from any port within the United States, Canada, or Mexico to any other such port if the vessel in stopping at any such intermediate port is not authorized both to discharge and to take on passengers. A port or station within Newfoundland shall not, for the purposes of the preceding two sentences, be considered as a port or station within Canada. For the purposes of this section, the words "northern portion of the Western Hemisphere" mean the area lying west of the 30th meridian west of Green§4261
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