by rail, motor vehicle, or water and substituted "tax equal to 5 percent of the amount so paid in connection with transportation which begins after November 15, 1962, and before July 1, 1963" for "tax equal to 10 percent of the amount so paid for transportation which begins before November 16, 1962."

Pub. L. 87-508, § 5(a), substituted provisions imposing a tax equal to 10 percent of the amount paid for transportation which begins before Nov. 16, 1962, for provisions imposing a tax equal to 10 percent of the amount paid before July 1, 1962, or 5 percent of the amount paid on or after July 1, 1962.

Subsec. (c). Pub. L. 87-508, § 5(b), substituted "tax equivalent to 5 percent of the amount so paid in connection with transportation which begins after November 15, 1962, and before July 1, 1963" for "tax equivalent to 10 percent of the amount so paid in connection with transportation which begins before November 16, 1962."

Pub. L. 87-508, § 5(a), substituted provision imposing a tax equivalent to 10 percent of the amount paid in connection with transportation which begins before Nov. 16, 1962 for provision imposing a tax equivalent to 10 percent of the amount paid before July 1, 1962, or 5 percent of the amount paid on or after July 1, 1962.

1961-Pub. L. 87-72 substituted "July 1, 1962" for "July 1, 1961", wherever appearing.

1960-Pub. L. 86-564 substituted "July 1, 1961" for "July 1, 1960" wherever appearing.

1959-Pub. L. 86-75 reduced the tax on transportation of persons from ten to five percent effective July 1, 1960.

EFFECTIVE DATE OF 1962 AMENDMENT

Section 5(b) of Pub. L. 87-508 provided in part that the amendment of this subchapter by section 5(b) shall be effective with respect to transportation beginning after Nov. 15, 1962.

SPECIAL CREDIT OR REFUND OF TRANSPORTATION TAX Section 5(e) of Pub. L. 87-508, as amended by Pub. L. 88-52, § 3(b) (3), June 29, 1963, 77 Stat. 73, provided that: "Notwithstanding any other provision of law, in any case in which tax has been collected

"(1) before November 16, 1962, for or in connection with the transportation of persons which begins on or after November 16, 1962, or

"(2) after November 15, 1962, and before July 1, 1964, for or in connection with the transportation of persons by air which begins on or after July 1, 1964. the person who collected the tax shall pay the same over to the United States; but credit or refund (without interest) of the tax collected in excess of that applicable (by reason of the amendments made by this section) [to this subchapter and sections 6416 and 6421 of this title] shall be allowed to the person who collected the tax as if such credit or refund were a credit or refund under the applicable provision of the Internal Revenue Code of 1954, but only to the extent that, before the time such transportation has begun, he has repaid the amount of such excess to the person from whom he collected the tax, or has obtained the consent of such person to the allowance of the credit or refund. For the purpose of this subsection, transportation shall not be considered to have begun on or after November 16, 1962, or on or after July 1, 1964, as the case may be, if any part of the transportation paid for (or for which payment has been obligated) commenced before such date."

§ 4262. Definition of taxable transportation. (a) Taxable transportation; in general.

For purposes of this subchapter, except as provided in subsection (b), the term "taxable transportation" means—

(1) transportation which begins in the United States or in the 225-mile zone and ends in the United States or in the 225-mile zone; and

(2) in the case of transportation other than transportation described in paragraph (1), that portion of such transportation which is directly or indirectly from one port or station in the United

States to another port or station in the United States, but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c) (3)).

(b) Exclusion of certain travel.

For purposes of this subchapter, the term "taxable transportation" does not include that portion of any transportation which meets all 4 of the following requirements:

(1) such portion is outside the United States; (2) neither such portion nor any segment thereof is directly or indirectly

(A) between (i) a point where the route of the transportation leaves or enters the continental United States, or (ii) a port or station in the 225-mile zone, and

(B) a port or station in the 225-mile zone; (3) such portion

(A) begins at either (i) the point where the route of the transportation leaves the United States, or (ii) a port or station in the 225-mile zone, and

(B) ends at either (i) the point where the route of the transportation enters the United States, or (ii) a port or station in the 225-mile zone; and

(4) a direct line from the point (or the port or station) specified in paragraph (3) (A), to the point (or the port or station) specified in paragraph (3) (B), passes through or over a point which is not within 225 miles of the United States. (c) Definitions.

For purposes of this section

(1) Continental United States.

The term "continental United States" means the District of Columbia and the States other than Alaska and Hawaii.

(2) 225-mile zone.

The term "225-mile zone" means that portion of Canada and Mexico which is not more than 225 miles from the nearest point in the continental United States.

(3) Uninterrupted international air transportation. The term "uninterrupted international air transportation" means any transportation by air which is not transportation described in subsection (a) (1) and in which

(A) the scheduled interval between (i) the beginning or end of the portion of such transportation which is directly or indirectly from one port or station in the United States to another port or station in the United States and (ii) the end or beginning of the other portion of such transportation is not more than 6 hours, and

(B) the scheduled interval between the beginning or end and the end or beginning of any two segments of the portion of such transportation referred to in subparagraph (A)(i) is not more than 6 hours.

(As amended June 25, 1959, Pub. L. 86-70, § 22(b), 73 Stat. 146; July 12, 1960, Pub. L. 86-624, § 18(a), 74 Stat. 416; June 28, 1962, Pub. L. 87-508, § 5(b), 76 Stat. 116.)

AMENDMENTS

1962 Subsec. (a). Pub. L. 87-508 substituted in the introductory phrase "subchapter" for "part" and added to par. (2)", but only if such portion is not a part of uninterrupted international air transportation (within the meaning of subsection (c) (3))."

Subsec. (b).

Pub. L. 87-508 substituted in the introductory phrase "subchapter" for "part."

Subsec. (c). Pub. L. 87-508 added par. (3). 1960 Subsec. (c) (1). Pub. L. 86-624 inserted words "and Hawaii" following "Alaska."

1959 Subsec. (c) (1). Pub. L. 86-70 substituted "the District of Columbia and the States other than Alaska" for "the existing 48 States and the District of Columbia." EFFECTIVE DATE OF 1962 AMENDMENT Amendment of section by Pub. L. 87-508, § 5(b), effective with respect to transportation beginning after Nov. 15, 1962, see note set out under section 4261 of this title. EFFECTIVE DATE OF 1960 AMENDMENT

Amendment of section by Pub. L. 86-624 effective on August 21, 1959, see section 18(k) of Pub. L. 86-624, set out as a note under section 2202 of this title.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment of section by Pub. L. 86-70 effective Jan. 3, 1959, see section 22(1) of Pub. L. 86-70, set out as a note under section 2202 of this title.

§ 4263. Exemptions.

(a) Commutation travel, etc.

The tax imposed by section 4261 shall not apply to amounts paid for transportation which do not exceed 60 cents, to amounts paid for commutation or season tickets for single trips of less than 30 miles, or to amounts paid for commutation tickets for one month or less.

(b) Certain organizations.

The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished to an international organization, or any cor. poration created by Act of Congress to act in matters of relief under the treaty of Geneva of August 22, 1864.

(c) Members of the Armed Forces.

The tax imposed by section 4261 shall not apply to the payment for transportation or facilities furnished under special tariffs providing for fares of not more than 2.5 cents per mile applicable to roundtrip tickets sold to personnel of the United States Army, Air Force, Navy, Marine Corps, and Coast Guard traveling in uniform of the United States at their own expense when on official leave, furlough, or pass, including authorized cadets and midshipmen, issued on presentation of properly executed certificate.

(d) Small aircraft on nonestablished lines.

The tax imposed by section 4261 shall not apply to transportation by aircraft having

(1) a gross takeoff weight (as determined under regulations prescribed by the Secretary or his delegate) of less than 12,500 pounds, and

(2) a passenger seating capacity of less than ten adult passengers, including the pilot, except when such aircraft is operated on an established line. (As amended June 28, 1962, Pub. L. 87-508, § 5(b), 76 Stat. 117.)

AMENDMENTS

1962 Subsec. (b). Pub. L. 87-508 redesignated former subsec. (d) as (b). Former subsec. (b), which related to

exemption of small vehicles on nonestablished lines, was eliminated.

Subsec. (c).

Pub. L. 87-508 redesignated former subsec. (e) as (c). Former subsec. (c), which related to exemption of fishing trips, was eliminated.

Subsec. (d). Pub. L. 87-508 redesignated former subsec. (f) as (d). Former subsec. (d) redesignated (b). Subsecs. (e), (f). Pub. L. 87-508 redesignated former subsecs (e), (f) as (c), (d), respectively.

EFFECTIVE DATE OF 1962 AMENDMENT Amendment of section by Pub. L. 87-508, § 5(b), effective with respect to transportation beginning after Nov. 15, 1962, see note set out under section 4261 of this title. § 4264. Special rules.

(a) Payments made outside the United States for prepaid orders.

If the payment upon which tax is imposed by section 4261 is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation pursuant to such order shall collect the amount of the tax.

(b) Tax deducted upon refunds.

Every person who refunds any amount with respect to a ticket or order which was purchased without payment of the tax imposed by section 4261 shall deduct from the amount refundable, to the extent available, any tax due under such section as a result of the use of a portion of the transportation purchased in connection with such ticket or order, and shall report to the Secretary or his delegate the amount of any such tax remaining uncollected. (c) Payment of tax.

Where any tax imposed by section 4261 is not paid at the time payment for transportation is made, then, under regulations prescribed by the Secretary or his delegate, to the extent that such tax is not collected under any other provision of this subchapter

(1) such tax shall be paid by the person paying for the transportation or by the person using the transportation;

(2) such tax shall be paid within such time as the Secretary or his delegate shall prescribe by regulations after whichever of the following first

occurs:

(A) the rights to the transportation expire; or (B) the time when the transportation becomes subject to tax; and

(3) payment of such tax shall be made to the Secretary or his delegate, to the person to whom the payment for transportation was made, or, in the case of transportation other than transportation described in section 4262(a) (1), to any person furnishing any portion of such transportation. (d) Application of tax.

The tax imposed by section 4261 shall apply to any amount paid within the United States for transportation of any person by air unless the taxpayer establishes, pursuant to regulations prescribed by the Secretary or his delegate, at the time of payment for the transportation, that the transportation is not transportation in respect of which tax is imposed by section 4261.

(e) Round trips.

In applying this subchapter to a round trip, such round trip shall be considered to consist of transportation from the point of departure to the destination, and of separate transportation thereafter. (f) Transportation outside the northern portion of the Western Hemisphere.

In applying this subchapter to transportation any part of which is outside the northern portion of the Western Hemisphere, if the route of such transportation leaves and reenters the northern portion of the Western Hemisphere, such transportation shall be considered to consist of transportation to a point outside such northern portion, and of separate transportation thereafter. For purposes of this subsection, the term "northern portion of the Western Hemisphere" means the area lying west of the 30th meridian west of Greenwich, east of the international dateline, and north of the Equator, but not including any country of South America. (As amended June 28, 1962, Pub. L. 87-508, § 5(b), 76 Stat. 117.)

AMENDMENTS

1962-Subsec. (c)(3). Pub. L. 87-508 provided for payment of tax, in the case of transportation other than transportation described in section 4262(a)(1), to any person furnishing any portion of the transportation. Subsec. (d). Pub. L. 87-508 inserted "by air" following "transportation of any person."

Subsec. (e). Pub. L. 87-508 substituted "subchapter" for "part."

Subsec. (f). Pub. L. 87-508 substituted "subchapter" for "part", eliminated par. (1) designation for provision respecting transportation outside the northern portion of the Western Hemisphere and par. (2) prohibiting consideration as a stop at a port within the United States a stop at an intermediate port at which vessel is not authorized to discharge and take on passengers.

EFFECTIVE DATE OF 1962 AMENDMENT Amendment of section by Pub. L. 87-508, § 5(b), effective with respect to transportation beginning after Nov. 15, 1962, see note set out under section 4261 of this title.

Subchapter E.-Special Provisions Applicable to
Services and Facilities Taxes

§ 4294. Exemption for nonprofit educational organizations.

(b) Definition.

For purposes of subsection (a), the term "nonprofit educational organization" means an educational organization described in section 503(b) (2) which is exempt from income tax under section 501 (a). The term also includes a school operated as an activity of an organization described in section 501 (c) (3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. (As amended Pub. L. 86-344, § 2(d), Sept. 21, 1959, 73 Stat. 618.)

AMENDMENTS

1959 Subsec. (b). Pub. L. 86-344 included in the definition of "nonprofit educational organization" a school operated as an activity of certain organizations exempt from the income tax and having a regular situs, faculty, curriculum and student body.

EFFECTIVE Date of 1959 AMENDMENT Amendment of subsec. (b) of this section by section 2(d) of Pub. L. 86-344 effective Jan. 1, 1959, see section 2(e) of Pub. L. 86-344, set out in part as a note under section 4057 of this title.

Chapter 34.-DOCUMENTARY STAMP TAXES Subchapter A.-Issuance of Capital Stock and Certificate of Indebtedness by a Corporation PART I.-ISSUANCE OF CAPITAL STOCK AND SIMILAR INTERESTS

§ 4301. Imposition of tax.

There is hereby imposed, on each original issue of shares or certificates of stock issued by a corporation (whether on organization or reorganization), a tax at the rate of 10 cents on each $100 (or major fraction thereof) of the actual value of the certificates (or of the shares where no certificates are issued); except that such rate shall be 4 cents instead of 10 cents in the case of shares or certificates issued by a corporation to which subchapter M of chapter 1 applies for the taxable year during which such share or certificate is issued. The tax imposed by this section shall be computed on the basis of all certificates (or shares) so issued by the corporation on each day. (As amended Apr. 8, 1960, Pub. L. 86-416, § 1, 74 Stat. 36.)

AMENDMENTS

1960-Pub. L. 86-416 fixed the rate of tax at 4 cents in the case of shares or certificates issued by a corporation to which subchapter M of chapter 1 applies for the taxable year during which such share or certificate is issued.

EFFECTIVE DATE OF 1960 AMENDMENT

Section 2 of Pub. L. 86-416 provided that: "The amendment made by the first section of this Act [to this section] shall apply with respect to shares and certificates issued after the date of the enactment of this Act [April 8, 1960]."

Subchapter B.-Sales or Transfers of Capital Stock and Certificates of Indebtedness of a Corporation PART I.-SALES OR TRANSFERS OF CAPITAL STOCK AND SIMILAR INTERESTS

§ 4321. Imposition of tax.

There is hereby imposed on each sale or transfer of shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, issued by a corporation, a tax at the rate of 4 cents on each $100 (or major fraction thereof) of the actual value of the certificates, of the shares where no certificates are sold or transferred, or of the rights, as the case may be. In no case shall the tax so imposed on any such sale or transfer be

(1) more than 8 cents on each share, or (2) less than 4 cents on the sale or transfer. (As amended Sept. 21, 1959, Pub. L. 86-344, § 5(a), 73 Stat. 619.)

AMENDMENTS

1959-Pub. L. 86-344 provided for the imposition of tax on rights to subscribe for or to receive shares or certificates on basis of actual value of the rights.

EFFECTIVE DATE OF 1959 AMENDMENT Section 5(c) of Pub. L. 86-344 provided that: "The amendments made by subsections (a) and (b) [to this section and section 4353 (b) of this title] shall take effect

Where shares or certificates of stock, or of rights to subscribe for or to receive such shares or certificates, are presented for transfer and the tax thereon is paid by the use of adhesive stamps, such shares, certificates, or rights shall be accompanied by a certification signed by the transferor or his agent or the transferee or his agent as to the actual value of the shares, certificates, or rights so transferred, and any corporation or transfer agent to whom such shares, certificates, or rights are presented shall be entitled to rely on such certification without further inquiry.

(As amended Sept. 21, 1959, Pub. L. 86–344, § 5(b), 73 Stat. 619.)

AMENDMENTS

1959-Subsec. (b). Pub. L. 86-344 substituted “shares, certificates, or rights" for "shares or certificates" in three instances.

EFFECTIVE Date of 1959 AMENDMENT

Amendment of subsec. (b) of this section by section 5(b) of Pub. L. 86-344 effective on first day of first calendar month which begins more than 10 days after Sept. 21, 1959, see section 5(c) of Pub. L. 86-344, set out as a note under section 4321 of this title.

(2) Domestic building and loan associations and mutual ditch or irrigation companies.

Shares or certificates of stock issued by domestic building and loan associations and cooperative banks, to the extent such shares or certificates represent deposits or withdrawable accounts; or shares or certificates of stock and certificates of indebtedness issued by mutual ditch or irrigation companies.

(As amended Oct. 16, 1962, Pub. L. 87-834, § 6(e) (2), 76 Stat. 984.)

AMENDMENTS

1962 Subsec. (a)(2). Pub. L. 87-834 substituted "Shares or certificates of stock issued by domestic building and loan associations and cooperative banks, to the extent such shares or certificates represent deposits or withdrawable accounts; or shares or certificates of stock and certificates of indebtedness issued by mutual ditch or irrigation companies" for "Shares or certificates of stock and certificates of indebtedness issued by domestic building and loan associations, savings and loan associations, cooperative banks, and homestead associations substantially all the business of which is confined to making loans to members, or by mutual ditch or irrigation companies."

EFFECTIVE Date of 1962 Amendment

Section 6(g) (4) of Pub. L. 87-834 provided that: "Subsection (e) of this section [amending subsec. (a) (2) of this section and section 1464 (h) of Title 12, Banks and Banking] shall become effective on January 1, 1963, except that

"(A) in the case of the tax imposed by section 4251 of the Internal Revenue Code of 1954 [section 4251 of this title], such subsection shall apply only with respect to amounts paid pursuant to bills rendered after December 31, 1962; and

"(B) in the case of the tax imposed by section 4261 of such Code [section 4261 of this title], such subsection shall apply only with respect to transportation beginning after December 31, 1962."

Chapter 36.-CERTAIN OTHER EXCISE TAXES Subchapter B.-Occupational Tax on Coin-Operated

Devices

§ 4461. Imposition of tax. (a) In general.

There shall be imposed a special tax to be paid by every person who maintains for use or permits the use of, on any place or premises occupied by him, a coin-operated amusement or gaming device at the following rates:

(1) $10 a year, in the case of a device defined in paragraph (1) of section 4462(a);

(2) $250 a year, in the case of a device defined in paragraph (2) of section 4462(a); and

(3) $10 or $250 a year, as the case may be, for each additional device so maintained or the use of which is so permitted. If one such device is replaced by another, such other device shall not be considered an additional device. (b) Reduced rate.

In the case of a device which is defined in paragraph (2) of section 4462 (a) and which is commonly known as a claw, crane, or digger machine, the tax imposed by subsection (a) shall be at the rate of $10 a year (in lieu of $250 a year) if—

(1) the charge for each operation of such device is not more than 10 cents,

(2) such device never dispenses a prize other than merchandise of a maximum retail value of $1, and with respect to such device there is never a display or offer of any prize or merchandise other than merchandise dispensed by such machine,

(3) such device is actuated by a crank and operated solely by means of a nonelectrical mechanism, and

(4) such device is not operated other than in connection with and as part of carnivals or county or State fairs.

(As amended Sept. 21, 1959, Pub. L. 86-344, § 6(a), 73 Stat. 620.)

AMENDMENTS

1959-Pub. L. 86-344 designated former provisions as subsec. (a) and added subsec. (b).

EFFECTIVE DATE OF 1959 AMENDMENT

Section 6(b) of Pub. L. 86-344 provided that: "The amendment made by subsection (a) [to this section] shall apply with respect to periods after June 30, 1960."

SUBCHAPTER D.-TAX ON USE OF CERTAIN VEHICLES

§ 4481. Imposition of tax.

(a) Imposition of tax.

A tax is hereby imposed on the use of any highway motor vehicle which (together with the semitrailers and trailers customarily used in connection with highway motor vehicles of the same type as such highway motor vehicle) has a taxable gross weight of more than 26,000 pounds, at the rate of $3.00 a year for each 1,000 pounds of taxable gross weight or fraction thereof. In the case of the taxable period beginning on July 1, 1972, and ending on September 30, 1972, the tax shall be at the rate of 75 cents for such period for each 1,000 pounds of taxable gross weight or fraction thereof.

(c) Proration of tax.

If in any taxable period the first use of the highway motor vehicle is after the first month in such period, the tax shall be reckoned proportionately from the first day of the month in which such use occurs to and including the last day in such taxable period. (d) One tax liability per period.

(1) In general.

To the extent that the tax imposed by this section is paid with respect to any highway motor vehicle for any taxable period, no further tax shall be imposed by this section for such taxable period with respect to such vehicle.

(2) Cross reference.

For privilege of paying tax imposed by this section in installments, see section 6156.

(e) Period tax in effect.

The tax imposed by this section shall apply only to use before October 1, 1972. (As amended June 29, 1961, Pub. L. 87-61, title II, § 203 (a), (b) (1), (2) (A), (B), 75 Stat. 124.)

AMENDMENTS

1961-Subsec. (a). Pub. L. 87-61, § 203 (a), (b) (2) (A), increased the rate of tax from $1.50 to $3.00 a year, and provided for a tax at the rate of 75 cents for each 1,000 pounds during the period beginning on July 1, 1972, and ending on September 30, 1972.

Subsec. (c). Pub. L. 87-61, § 203(b)(2)(B), substituted "any taxable period" for "any year", "after the first month in such period" for "after July 31", and "the last day in such taxable period" for "the last day of June following."

Subsec. (d). Pub. L. 87-61, § 203(b) (2) (B), made conforming changes to refer to payment of tax for a taxable period instead of payment for a year, and inserted the cross reference to section 6156.

Subsec. (e). Pub. L. 87-61, § 203(b) (1), substituted "before October 1, 1972" for "after June 30, 1956, and before July 1, 1972."

EFFECTIVE DATE OF 1961 AMENDMENT

Amendment of section by Pub. L. 87-61 effective on July 1, 1961, see section 208 of Pub. L. 87-61, set out as a note under section 4041 of this title.

There is hereby imposed upon manufactured sugar manufactured in the United States, a tax, to be paid by the manufacturer at the rate of 0.53 cent per pound of the total sugars therein. The manufacturer shall pay the tax with respect to manufactured sugar (1) which has been sold, or used in the production of other articles, by the manufacturer during the preceding month (if the tax has not already been paid) and (2) which has not been so sold or used within 12 months ending during the preceding calendar month, after it was manufactured (if the tax has not already been paid). For the purpose of determining whether sugar has been sold or used within 12 months after it was manufactured, sugar shall be considered to have been sold or used in the order in which it was manufactured.

(b) Termination of tax.

No tax shall be imposed under this subchapter on the manufacture or use of sugar or articles com