84 STAT. ]
PUBLIC LAW 91-258-MAY 21, 1970
239
(5) by adding at the end thereof the following new subsection: " (d) TRANSPORTATION.—For purposes of this part, the term 'trans- tiol^^^"^^"'^'^' portation' includes layover or waiting time and movement of the aircraft in deadhead service." (c) REQUIREMENTS ADVERTISING.—
WITH
RESPECT
TO A I R I J N E
TICKETS AND
(1) Subchapter B of chapter 75 (relating to other otfenses) is y/sut^'is's.^ ' amended by adding at the end thereof the following new section: 26 USC 7261"SEC. 7275. PENALTY FOR OFFENSES RELATING TO CERTAIN AIRLINE TICKETS AND ADVERTISING. " (a) TICKETS.—In the case of transportation by air all of which is taxable transportation (as defined in section 4262), the ticket for such Ante, p. 238. transportation— " (1) shall show the total of (A) the amount paid for such transportation and (B) the taxes imposed by sections 4261(a) and (b), Ante, p. 238. " (2) shall not show separately the amount paid for such transportation nor the amount of such taxes, and "(3) if the ticket shows amounts paid with respect to any segment of such transportation, shall comply with paragraphs (1) and (2) with respect to such segments as well as with respect to the sum of the segments. "(b) ADVERTISING.—In the case of transportation by air all of which is taxable transportation (as defined in section 4262) or would be taxable transportation if section 4262 did not include subsection (b) t hereof, any advertising made by or on behalf of any person furnishing such transportation (or offering to arrange such transportation) which states the cost of such transportation shall— "(1) state such cost only as the total of (A) the amount to be paid for such transportation, and (B) the taxes imposed by sections 4261(a), (b), and (c),and "(2) shall not state separately the amount to be paid for such transportation nor the amount of such taxes. "(c) PENALTY.—Any person w'ho violates any provision of subsection (a) or (b) is, for each violation, guilty of a misdemeanor, and upon conviction thereof shall be fined not more than $100." (2) The table of sections for such subchapter B is amended by adding at the end thereof the following: "Sec. 7275. Penalty for offenses relating to certain airline tickets and advertising."
SEC. 204. TAX ON TRANSPORTATION OF PROPERTY BY AIR. Subchapter C of chapter 33 (relating to transportation by air) y^^"^^' ^ngn^^' is amended by adding at the end thereof the following new part: 26 USC 42614264.
"PART II—PROPERTY "Sec. 4271. Imposition of tax. "Sec. 4272. Definition of taxable transportation, etc. "SEC. 4271. IMPOSITION OF TAX. " (a) IN GENERAL. —There is hereby imposed upon the amount paid
within or without the United States for the taxable transportation (as defined in section 4272) of property which begins after June 30, 1970, a tax equal to 5 percent of the amount so paid for such transportation. The tax imposed by this subsection shall apply only to amounts paid to a person engaged in the business of transporting property by air for hire. " (b) BY W H O M PAID.—
"(1) IN GENERAL.—Except as provided by paragraph (2), the tax imposed by subsection (a) shall be paid by the person making the payment subject to tax.
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