§ 4261. Imposition of tax
(a)
In general
There is hereby imposed on the amount paid for taxable transportation of any person a tax equal to 7.5 percent of the amount so paid.
(b)
Domestic segments of taxable transportation
(1)
In general
There is hereby imposed on the amount paid for each domestic segment of taxable transportation by air a tax in the amount determined in accordance with the following table for the period in which the segment begins:
| In the case of segments beginning: | The tax is: |
|---|---|
| After September 30, 1997, and before October 1, 1998 | $1.00 |
| After September 30, 1998, and before October 1, 1999 | $2.00 |
| After September 30, 1999, and before January 1, 2000 | $2.25 |
| During 2000 | $2.50 |
| During 2001 | $2.75 |
| During 2002 or thereafter | $3.00. |
(3)
Changes in segments by reason of rerouting
If—
(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
There is hereby imposed a tax of $12.00 on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States.
(e)
Special rules
(1)
Segments to and from rural airports
(A)
Exception from segment tax
The tax imposed by subsection (b)(1) shall not apply to any domestic segment beginning or ending at an airport which is a rural airport for the calendar year in which such segment begins or ends (as the case may be).
(B)
Rural airport
For purposes of this paragraph, the term “rural airport” means, with respect to any calendar year, any airport if—
(C)
No phasein of reduced ticket tax
In the case of transportation beginning before October 1, 1999—
(i)
In general
Paragraph (5) shall not apply to any domestic segment beginning or ending at an airport which is a rural airport for the calendar year in which such segment begins or ends (as the case may be).
(ii)
Transportation involving multiple segments
In the case of transportation involving more than 1 domestic segment at least 1 of which does not begin or end at a rural airport, the 7.5 percent rate applicable by reason of clause (i) shall be applied by taking into account only an amount which bears the same ratio to the amount paid for such transportation as the number of specified miles in domestic segments which begin or end at a rural airport bears to the total number of specified miles in such transportation.
(2)
Amounts paid outside the United States
In the case of amounts paid outside the United States for taxable transportation, the taxes imposed by subsections (a) and (b) shall apply only if such transportation begins and ends in the United States.
(3)
Amounts paid for right to award free or reduced rate air transportation
(A)
In general
Any amount paid (and the value of any other benefit provided) to an air carrier (or any related person) for the right to provide mileage awards for (or other reductions in the cost of) any transportation of persons by air shall be treated for purposes of subsection (a) as an amount paid for taxable transportation, and such amount shall be taxable under subsection (a) without regard to any other provision of this subchapter.
(B)
Controlled group
For purposes of subparagraph (A), a corporation and all wholly owned subsidiaries of such corporation shall be treated as 1 corporation.
(C)
Regulations
The Secretary shall prescribe rules which reallocate items of income, deduction, credit, exclusion, or other allowance to the extent necessary to prevent the avoidance of tax imposed by reason of this paragraph. The Secretary may prescribe rules which exclude from the tax imposed by subsection (a) amounts attributable to mileage awards which are used other than for transportation of persons by air.
(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—
(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 1992” in subparagraph (B) 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.
(C)
Taxable event
For purposes of subparagraph (A), in the case of the tax imposed by subsection (b), the beginning of the domestic segment shall be treated as the taxable event.
(D)
Special rule for amounts paid for domestic segments beginning after 2002
If an amount is paid during a calendar year for a domestic segment beginning in a later calendar year, then the rate of tax under subsection (b) on such amount shall be the rate in effect for the calendar year in which such amount is paid.
(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—
(h)
Exemption for skydiving uses
No tax shall be imposed by this section or section
4271 on any air transportation exclusively for the purpose of skydiving.
(i)
Exemption for seaplanes
No tax shall be imposed by this section or section
4271 on any air transportation by a seaplane with respect to any segment consisting of a takeoff from, and a landing on, water, but only if the places at which such takeoff and landing occur have not received and are not receiving financial assistance from the Airport and Airways Trust Fund.
(j)
Application of taxes