Outside-US Payment Exclusion

§ 4261. Imposition of tax(a) In generalThere 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 generalThere is hereby imposed on the amount paid for each domestic segment of taxable transportation by air a tax in the amount of $3.00. (2) Domestic segmentFor purposes of this section, the term “domestic segment” means any segment consisting of 1 takeoff and 1 landing and which is taxable transportation described in section 4262(a)(1). (3) Changes in segments by reason of reroutingIf—(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 generalThere 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. (2) Exception for transportation entirely taxable under subsection (a)This subsection shall not apply to any transportation all of which is taxable under subsection (a) (determined without regard to sections 4281 and 4282). (3) Special rule for Alaska and HawaiiIn any case in which the tax imposed by paragraph (1) applies to a domestic segment beginning or ending in Alaska or Hawaii, such tax shall apply only to departures and shall be at the rate of $6. (d) By whom paidExcept as provided in section 4263(a), the taxes imposed by this section shall be paid by the person making the payment subject to the tax. (e) Special rules(1) Segments to and from rural airports(A) Exception from segment taxThe 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 airportFor 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.